Bitcoin surged to a brand new all-time excessive after a brief commerce settlement between america and China eased macroeconomic fears and boosted investor confidence.
Bitcoin (BTC) set a brand new excessive of $109,400 on Might 21, rising greater than 26% up to now month, based on information from TradingView. This climb to a file excessive got here 9 days after the White Home announced a 90-day commerce settlement between the US and China on Might 12, quickly slashing import tariffs to 10%.
The 90-day tariff suspension and the cooperative tone in negotiations eliminated the danger of “sudden re-escalation,” which had a major affect on threat urge for food amongst conventional and cryptocurrency traders, Aurelie Barthere, principal analysis analyst at crypto intelligence platform Nansen, instructed Cointelegraph.
US President Donald Trump’s reciprocal tariffs have been seen as the most important macroeconomic menace 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 losing more than $5 trillion in worth, its largest drop to this point.
Bitcoin began its restoration on April 9 after Trump’s Liberation Day marked the “climax of uncertainty” for market individuals, Michaël van de Poppe, founding father of MN Consultancy, instructed Cointelegraph on the time.
Associated: Bitcoin more of a ‘diversifier’ than safe-haven asset: Report
Bitcoin entered Might with “near-flawless setup”
Bitcoin kicked off Might with a “near-flawless setup, catalyzed by a uncommon alignment of geopolitical de-escalation, bettering regulatory optics and macroeconomic tailwinds,” based on Jag Kooner, head of derivatives at Bitfinex alternate.
“The Russia–Ukraine ceasefire talks have defused one of many major geopolitical volatility engines of the previous two years,” Kooner instructed Cointelegraph, including:
“Slightly than triggering capital flight from Bitcoin — as usually 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 plentiful.”
The capital rotation displays a “maturing narrative” as “Bitcoin is not only a concern hedge — it’s more and more a high-conviction threat asset in intervals of macro stability,” Kooner stated.
Russia and Ukraine “will instantly begin negotiations in direction of a Ceasefire and, extra importantly, an END to the Conflict,” Trump stated in a Might 19 X submit, summarizing his two-hour name with Russian President Vladimir Putin.
Associated: Ukraine strategic Bitcoin reserve bill reportedly in final stages
Nonetheless, funding charges want to stay impartial and open curiosity secure 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 stated.
Different analysts have predicted a Bitcoin rally to above $130,000 earlier than the tip of 2025, primarily based on BTC’s shut correlation with the worldwide cash provide.
The growing cash provide might push Bitcoin’s price above $132,000 earlier than the tip 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.
Journal: Arthur Hayes $1M Bitcoin tip, altcoins ‘powerful rally’ looms: Hodler’s Digest, May 11 – 17
