Bitcoin hits new all-time high of $109K as trade war tensions ease

3 weeks ago

Bitcoin surged to a caller all-time precocious aft a impermanent commercialized statement betwixt the United States and China eased macroeconomic fears and boosted capitalist confidence.

Bitcoin (BTC) acceptable a caller precocious of $109,400 connected May 21, rising much than 26% successful the past month, according to information from TradingView. This ascent to a grounds precocious came 9 days aft the White House announced a 90-day commercialized statement betwixt the US and China connected May 12, temporarily slashing import tariffs to 10%.

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The 90-day tariff suspension and the cooperative code successful negotiations removed the hazard of “sudden re-escalation,” which had a important interaction connected hazard appetite among accepted and cryptocurrency investors, Aurelie Barthere, main probe expert astatine crypto quality level Nansen, told Cointelegraph.

US President Donald Trump’s reciprocal tariffs were seen arsenic the biggest macroeconomic menace to accepted equities and cryptocurrency markets successful 2025.

Bitcoin concisely fell to a year-to-date debased of $74,434 connected April 7, 5 days aft Trump announced his reciprocal import tariffs connected April 2, sending shockwaves crossed planetary markets, with the S&P 500 losing much than $5 trillion successful value, its largest driblet to date.

Bitcoin started its betterment connected April 9 aft Trump’s Liberation Day marked the “climax of uncertainty” for marketplace participants, Michaël van de Poppe, laminitis of MN Consultancy, told Cointelegraph astatine the time.

Bitcoin entered May with “near-flawless setup”

Bitcoin kicked disconnected May with a “near-flawless setup, catalyzed by a uncommon alignment of geopolitical de-escalation, improving regulatory optics and macroeconomic tailwinds,” according to Jag Kooner, caput of derivatives astatine Bitfinex exchange.

“The Russia–Ukraine ceasefire talks person defused 1 of the superior geopolitical volatility engines of the past 2 years,” Kooner told Cointelegraph, adding:

“Rather than triggering superior formation from Bitcoin — arsenic often seen erstwhile hazard wanes — this easing is unlocking a risk-on rotation. We’re seeing superior rotate into BTC and high-beta tech arsenic the request for geopolitical hedging fades, but liquidity remains abundant.”

The superior rotation reflects a “maturing narrative” arsenic “Bitcoin is nary longer conscionable a fearfulness hedge — it’s progressively a high-conviction hazard plus successful periods of macro stability,” Kooner said.

Russia and Ukraine “will instantly commencement negotiations towards a Ceasefire and, much importantly, an END to the War,” Trump said successful a May 19 X post, summarizing his two-hour telephone with Russian President Vladimir Putin.

Still, backing rates request to stay neutral and unfastened involvement unchangeable for a “consecutive setup” that whitethorn ignite a Bitcoin rally to supra $114,000 to $120,000, which whitethorn beryllium catalyzed by immoderate “macro oregon regulatory spark,” Kooner said.

Other analysts person predicted a Bitcoin rally to supra $130,000 earlier the extremity of 2025, based connected BTC’s adjacent correlation with the planetary wealth supply.

The expanding wealth proviso whitethorn propulsion Bitcoin’s terms supra $132,000 earlier the extremity of the year, arsenic capitalist request is driven by the increasing fiat wealth debasement, predicted Jamie Coutts, main crypto expert astatine Real Vision.