Bitcoin’s response to trade agreements between the US and China may reveal its status as a safe asset in today’s market. Recently, Bitcoin (BTC) saw a notable increase amidst a downturn in the stock market, edging past its previous peak during a significant sale in April, which was described as “incredibly strong” by Daan Crypto on May 11.
After dipping to $75,000 on April 7, Bitcoin rebounded remarkably, climbing 27% to around $95,000 by month’s end, while the S&P 500 and NASDAQ fell. Some analysts speculated that Bitcoin’s resilience might stem from narratives about using it to circumvent tariffs. They suggested that if a trade agreement were to be reached, there could be theoretical pushback.
“Theoretically, if trade uncertainty positively influenced BTC, it should stall once significant trade agreements, such as with China, are established.”
The White House stated on May 11 that US-China trade talks had made “substantial progress,” though an official agreement remains unannounced. Scott Bescent remarked that productive consultations were ongoing but hinted at the complexities of the situation. Daan also implied that tariffs might not markedly affect Bitcoin’s usage and handling.
Markets Anticipate Trade Agreement Announcements
Some analysts predict that Bitcoin could spike if a trade deal is finalized, especially alongside possible interest rate cuts. They note, “As the conclusion of US-China trade discussions looms and the chance of rate decreases grows, institutional investors are feeling anxious about Bitcoin and crypto investments.” Jupiter Zheng from Hashkey Capital added that a US-China agreement might signify stability in the global market, potentially prompting investments in alternative assets for growth.
“Bitcoin could reach new heights as a result, particularly if it weakens the dollar or if fresh liquidity flows into emerging markets.”
Analyst Clemente mentioned on X that a solid trade agreement announcement would be crucial to sustaining momentum. “I believe tangible announcements from China will be essential to keep local markets engaged.”
