The Bitcoin Eyes Price Records Price as the US reaches the trade deal with China, inflation data
Bitcoin Btc$103,948.68 High record prices can be hit immediately, triggering accelerated acquisitions in the broader Altcoin market, as avoiding US-China trade tensions can see markets positive for a potential slowing down April CPI since this week.
The United States has reached a trade agreement In China after two -day high -level negotiations in Geneva, US Treasury Secretary Scott Bescent and trade representative Jamieson Greer announced on Sunday. Both countries are scheduled to issue a joint statement on Geneva trade talks later Monday.
The trade deal came after the weeks of a Tit-For-tat trade war that saw both countries raising import tariffs over 100%, threatening to inject inflation in the global economy. As a result, the positive data of the US consumer price inflation was released last month was mainly deleted by investors and analysts as a lagging measure that inaccurately reflects rising trade tensions.
Bears, however, are no longer able to make that argument, thanks to the trade deal.
Thus, an ongoing softening of the CPI can raise fed rate cut bets, providing a bullish catalyst for a BTC rally to record highs of over $ 110,000. On the other hand, a warmer-than-anticipated CPI can be removed as the backward appearance, reflecting the April tariffs and not accounting for de-escalation in trade tensions.
CPI due to Tuesday is expected to show the cost of living eased at 2.3% year-year in April from 2.4% of March, according to the RBC. The main CPI, which excludes food and energy, is expected to remain at 2.8% year-year in April, with constant moderation of rent inflation.
According to 10x research, the consensus was that the CPI headline was unlikely to change at 2.4% in April.
“If this hopes are handling, the market may view the inflation report as positive. Preventing any negative tariff headlines, this week’s inflation data can provide a bullish catalyst,” Markus Thielen, founder of the founder of 10x researchsaid to CoinDesk.
“The CPI can be bullish, and can bring new hours high,” Thielen added.
Bitcoin, the leading cryptocurrency by market value, changed hands around $ 104,000, only 5.1% short to hit the new highs of over $ 109,350, CoinDesk data show.
The BTC has had a close V-shaped recovery from $ 75,000 since early April, with prices dropped by 10% last week due to ongoing flow of funds exchanged (ETF).
Blackrock’s Bitcoin ETF (IBIT) spot has registered net inflows for 20 straight trading days, which gained more than $ 5 billion in investor money, according to Sosovalue data. Last week, the Federal Reserve retained the cost of borrowing a benchmark that did not change in the scope of 4.25% to 4.5%, while re -pronounced as relying on data on potential rate cuts. Chairman Jerome Powell, however, offered bad clues, saying “the underlying picture of inflation was good,” while calling the implationary impact of short-lived tariffs.
Ether, the second largest cryptocurrency according to market value, rose 39% to $ 2,500 last week, the best performance since December 2020, according to Tradingview. Other major altcoins such as XRP, Doge, ADA and Sol advanced 9.7%, 56%, 19%and 20%, respectively.
According to HTX research, there are no signs of speculation -frenzy, which means the rally can continue.
“The indicated volatility (IV) in Bitcoin options remains stable in the range of 50%-55%, which is less than the extreme level of 80%+ commonly seen at the peak of previous bull markets.
“As long as the yields do not climb above 4.8% and the ETF flows remain stable, Bitcoin is likely to combine the $ 105,000- $ 115,000 range while waiting for the next breakout trigger,” HTX added.
