Bitcoin prices surged to $91,684, marking a significant increase of 4.5% ahead of expected trade negotiations with China. U.S. Treasury Secretary Scott Bessent expressed optimism about resolving tariffs, boosting both traditional markets and cryptocurrencies. Other assets like Ethereum and Solana also gained value, highlighting a broader market rally amid decreasing fears of trade conflicts.
Bitcoin’s price surged to $91,684 on Tuesday, reflecting a 4.5% increase over the past 24 hours. This rise marks the potential largest daily increase since April 9, when Bitcoin experienced an 8.3% gain. Investors reacted positively to U.S. Treasury Secretary Scott Bessent’s optimistic outlook regarding the U.S.-China trade war, believing a resolution may be imminent.
Notably, other cryptocurrencies also experienced gains, with Solana-based Fartcoin rising 21% to $1.08 and Dogecoin increasing by 9% to $0.17. Ethereum and Solana saw price jumps of 8% and 6% respectively, reaching $1,700 and $145, according to CoinGecko data. This broader market upturn suggests favorable sentiment across the cryptocurrency space caused by recent developments in trade discussions.
During a JP Morgan event, Bessent stated that the trade war with China is unsustainable, reinforcing expectations of a de-escalation. His comments contributed to a rise in U.S. stock indices, with the S&P 500 and Nasdaq climbing 2.3%, recovering from a prior 3% drop. Wall Street’s reaction indicates decreased anxiety regarding tariff impacts on the economy.
Financial analysts suggest that progress in tariff negotiations is beneficial for both traditional and crypto markets. Strahinja Savic from FRNT Financial noted that Bitcoin’s increasing valuation reflects a growing institutional belief in it as a safe haven asset.
Interestingly, Bitcoin’s recent performance has diverged from typical market behaviour, paralleling gold’s ascent rather than traditional risk assets, indicating a shift in investor confidence and preference for alternative value stores as noted by Alice Liu from CoinMarketCap.
In summary, optimism regarding U.S.-China trade negotiations has led to significant movements in Bitcoin and other cryptocurrencies, hinting at broader market confidence and institutional interest. The White House is actively pursuing trade solutions with numerous countries to address ongoing tensions, emphasising developments since the trade conflict escalated under the Trump administration.
