Bitcoin has climbed back to $94,000, driven by easing trade tensions and robust ETF inflows totaling $936 million. Institutional interest in cryptocurrencies has increased, impacting Bitcoin and other cryptocurrencies positively. Former President Trump indicated potential tariff cuts on Chinese imports, which may further alleviate market fears and support investor confidence.
Bitcoin has recently surpassed the $94,000 mark after a period of profit-taking, currently trading around $93,873. This increase, reflecting a surge of over 3.2% in 24 hours, is primarily attributed to the easing of trade tensions and significant inflows into Exchange-Traded Funds (ETFs). Institutional interest has reignited demand for cryptocurrencies, contributing to this price growth.
Data from CoinMarketCap highlights that spot Bitcoin ETFs experienced inflows of $936 million, the largest single-day capital influx since January 17. This robust participation from institutional investors signals a renewed confidence in the cryptocurrency market, positively impacting Bitcoin and leading to similar performance from other cryptocurrencies, such as XRP and Solana, which rose by 4.27% and over 5%, respectively.
Ethereum also noted a significant increase, trading approximately at $1,796 with a 6.5% uplift in the last 24 hours. While the overall market capitalisation increase might seem modest, the ongoing inflows to spot ETFs reinforce strong investor sentiment and confidence in cryptocurrencies.
In relation to trade tensions, former President Trump has suggested a reduction in tariffs on Chinese imports, stating, “145% is very high, and it won’t be that high… it will come down substantially.” Previous uncertainties regarding trade wars had made investors more risk-averse, leading to increased demand for traditional safe-haven assets, notably gold, which has recently surpassed the $3,400 mark. Trump remarked on the need for negotiations, indicating that a failure to reach a deal could adversely affect trade relations with the United States.
