The potential reaction of bitcoin prices to a trade deal between the United States and China can provide insights into whether bitcoin is used as a safe property in the current market.
Bitcoin (Btc) Outperformed stock and held “incredibly strong” during a sharp sale in stock markets in April, following Donald Trump’s announcement of tariffs on “release Day,” noticed The Crypto entrepreneur “Crypto Crypto” on May 11.
Following its sting at $ 75,000 on April 7, Bitcoin recovered strongly to trade 27% higher around $ 95,000 by the end of the month. Meanwhile, indexes such as the S&P 500 and Nasdaq refused in April.
At this time people wondered if Bitcoin Relative It is derived from the narrative that countries use bitcoin in bypass tariffs. The analyst said the opposite should be theoretical if the trade deal was confirmed.
“Theoretical speech, if trade uncertainty is what makes the BTC outperform, it should stop avoiding after hitting the most important deal, which includes China.”
Bitcoin’s performance since the announcement of Trump’s “Liberation Day.” Source: Crypto road
On May 11, the White House announced Talking between the US and China about a trade deal has made “big development.” However, no official agreement was announced.
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“We will provide details tomorrow, but I can tell you that the conversations are productive,” said US Treasury Secretary Scott Bessent.
However, if Bitcoin continues to do the matter and avoid it, “it is safe to think that tariffs are likely to have a little direct impact on how BTC is treated or used,” concludes Road.
Markets await the announcement of trade deal
Some analysts, however, believe that Bitcoin is likely to jump if a trade deal is coming, along with potential rates.
“We believe institutional investors are less afraid about investing in Bitcoin and Crypto as US-China trade talks have ended and the possibility of increasing rates,” Jeff Mei, chief operation official at BTSE, told Cointelegraph.
Meanwhile, Jupiter Zheng, researcher in the Hashkey Capital, said, “A US-China trade deal can signal stability in global markets, which potentially drive investors to look for growth opportunities and send capital to alternative properties.”
“Bitcoin can also see new highs as a result, especially if the deal weakens the dollar or leads to a modified liquidity flow to the emerging markets.”
Analyst is Clemente Says In X that only a stable announcement of a trade deal is likely to maintain the momentum rotation.
“It feels like you will need a real, tangible announcement in front of China to keep things moving here locally, momentum that begins to stand out with BTC for the first time a little bit,” he said.
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