Bitcoin’s price exceeded $95,000 amid speculations about U.S.-China trade negotiations. While President Trump softens his rhetoric, China rolls back some tariffs. Stocks also rose, reflecting easing market uncertainty, even as consumer sentiment remains low, signalling potential future volatility.
Bitcoin surged past $95,000 for the first time since February, hitting $95,310 on Friday. This surge coincided with investors considering if U.S. President Donald Trump has made progress on trade talks with China, especially after his recent softer tone towards Beijing. Over the past day, Bitcoin gained nearly 2%, while Ethereum saw a rise of 2% to $1,800, though XRP dipped slightly by 0.7% to $2.20.
Trump remarked on Friday that he had communicated frequently with Chinese President Xi Jinping since the imposition of hefty tariffs on China, the U.S.’s largest trading partner. However, a Chinese Commerce Ministry spokesperson indicated that no trade talks had occurred, signalling that an agreement seemed far off. Interestingly, there were reports that China might abandon retaliatory tariffs on some U.S. semiconductors, previously set at a steep 125%.
The cryptocurrency market experienced an uptick early in the week, mirroring gains in U.S. stock markets. Members of Trump’s administration, like Treasury Secretary Scott Bessent, indicated that the trade war with China could not continue indefinitely without negative repercussions for both economies. China’s move to ease semiconductor tariffs and possibly grant exemptions for other products hints at a decrease in market volatility, according to Aurelie Bathere from Nansen, a crypto analytics firm.
Bathere noted that China’s exemptions on certain products are due to the negative impact on its own industries, suggesting a cautious shift in strategy. However, she stressed that the U.S.-China negotiations will still face trust issues as they proceed. In the stock market, the S&P 500 rose by 0.74%, and the Nasdaq advanced by 1.26%, leading to solid weekly gains. Despite this, both indices remain lower than their levels from early April.
Recent consumer sentiment data from the University of Michigan was revised upwards, yet it still reflects a decline for four consecutive months, the lowest since mid-2022, coinciding with high inflation rates. In light of the troubling consumer sentiment, more uncertainty looms ahead, according to Juan Leon, a senior strategist at Bitwise. He expressed concern about Trump’s indecisiveness suggesting another delay on reciprocal tariffs might be imminent unless we see actual trade agreements finalized, especially with China.
