Bitcoin Surges After Trade Truce
Bitcoin, the world’s largest cryptocurrency, surged to a record high of $109,400 following optimism over a temporary trade agreement between the United States and China. The same development also triggered rallies in gold and silver markets as investor sentiment turned positive.
The deal, which delayed tariffs for 90 days and reduced import duties to 10%, helped ease mounting macroeconomic tensions. After the Federal Reserve raised interest rates on March 23, confidence in Bitcoin had dropped significantly. Then-President Donald Trump imposed retaliatory tariffs, causing global market turmoil and wiping nearly $5 trillion off the S&P 500.
Risk Appetite Returns as Markets Stabilize
That wave of uncertainty appears to be retreating. Aurélie Barthere of Nansen noted that the suspension of tariffs lowers the risk of further escalation, allowing both traditional and crypto investors to re-enter the market more confidently.
Jag Kooner, Head of Derivatives at Bitfinex, emphasized that early May 2023 marked a prime opportunity for Bitcoin. “With global conflict risks fading and regulatory clarity improving, macro tailwinds are pushing Bitcoin into a bullish phase,” he said.
Further fueling the optimism, speculation of a ceasefire between Russia and Ukraine lifted market confidence. On May 19, Trump revealed via social media, “I had a two-hour talk with Vladimir Putin. We agreed to start talking so the war will be stopped.”
Bitcoin’s Role Is Evolving
Bitcoin is no longer seen solely as a hedge asset. In today’s market, it is increasingly viewed as a conviction asset—a symbol of long-term belief in digital value. Kooner said that instead of pulling out, investors are now reallocating toward Bitcoin and broader growth sectors.
Still, the road ahead depends on key technical and economic indicators. Analysts warn that for Bitcoin to climb past $114,000 or $120,000, funding rates must remain close to neutral, and open interest must stay stable. Positive macroeconomic conditions could act as a further catalyst.
Forecasts Remain Bullish
Some experts remain extremely optimistic. Jamie Coutts of Real Vision predicts Bitcoin could reach $132,000 by year-end, driven by rising global money supply and increasing doubts over fiat currency stability.
Bitcoin’s rise to $109,400 is being seen not just as a milestone, but as a potential turning point. As geopolitical tensions subside and investor confidence rebounds, Bitcoin may yet rally further in the months ahead.
