Bitcoin surged to a brand new all-time excessive after a brief commerce settlement between the US and China eased macroeconomic fears and boosted investor confidence.
Bitcoin (BTC) set a brand new excessive of $109,400 on Could 21, rising greater than 26% prior to now month, in keeping with information from TradingView. This climb to a file excessive got here 9 days after the White Home introduced a 90-day commerce settlement between the US and China on Could 12, briefly slashing import tariffs to 10%.
The 90-day tariff suspension and the cooperative tone in negotiations eliminated the chance of “sudden re-escalation,” which had a major influence on threat urge for food amongst conventional and cryptocurrency buyers, Aurelie Barthere, principal analysis analyst at crypto intelligence platform Nansen, advised Cointelegraph.
US President Donald Trump’s reciprocal tariffs have been seen as the largest macroeconomic risk to conventional equities and cryptocurrency markets in 2025.
Bitcoin briefly fell to a year-to-date low of $74,434 on April 7, 5 days after Trump introduced his reciprocal import tariffs on April 2, sending shockwaves throughout international markets, with the S&P 500 dropping greater than $5 trillion in worth, its largest drop thus far.
Bitcoin began its restoration on April 9 after Trump’s Liberation Day marked the “climax of uncertainty” for market contributors, Michaël van de Poppe, founding father of MN Consultancy, advised Cointelegraph on the time.
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Bitcoin entered Could with “near-flawless setup”
Bitcoin kicked off Could with a “near-flawless setup, catalyzed by a uncommon alignment of geopolitical de-escalation, enhancing regulatory optics and macroeconomic tailwinds,” in keeping with Jag Kooner, head of derivatives at Bitfinex alternate.
“The Russia–Ukraine ceasefire talks have defused one of many main geopolitical volatility engines of the previous two years,” Kooner advised Cointelegraph, including:
“Fairly than triggering capital flight from Bitcoin — as typically seen when threat wanes — this easing is unlocking a risk-on rotation. We’re seeing capital rotate into BTC and high-beta tech as the necessity for geopolitical hedging fades, however liquidity stays considerable.”
The capital rotation displays a “maturing narrative” as “Bitcoin is now not only a worry hedge — it’s more and more a high-conviction threat asset in durations of macro stability,” Kooner mentioned.
Russia and Ukraine “will instantly begin negotiations in the direction of a Ceasefire and, extra importantly, an END to the Conflict,” Trump mentioned in a Could 19 X publish, summarizing his two-hour name with Russian President Vladimir Putin.
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Nonetheless, funding charges want to stay impartial and open curiosity steady for a “consecutive setup” that will ignite a Bitcoin rally to above $114,000 to $120,000, which can be catalyzed by any “macro or regulatory spark,” Kooner mentioned.
Different analysts have predicted a Bitcoin rally to above $130,000 earlier than the top of 2025, based mostly on BTC’s shut correlation with the worldwide cash provide.
The growing cash provide might push Bitcoin’s worth above $132,000 earlier than the top of the 12 months, as investor demand is pushed by the rising fiat cash debasement, predicted Jamie Coutts, chief crypto analyst at Actual Imaginative and prescient.
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