Bitcoin surged above $95,000 for the first time since February, driven by potential progress in U.S.-China trade talks. Although markets have reacted positively, concerns persist over consumer sentiment and ongoing uncertainty in trade agreements. Meanwhile, U.S. stock indices are performing well, but still lag behind earlier highs.
Bitcoin has surged recently, climbing above $95,000 for the first time since February. This spike follows news suggesting U.S. President Donald Trump might be making headway in trade discussions with China. As of Friday, Bitcoin was trading at $95,310, reflecting a nearly 2% increase over the previous day, according to data from CoinGecko. Meanwhile, other cryptocurrencies showed mixed results with Ethereum rising slightly while XRP saw a decline.
In the wake of these unfolding events, Trump mentioned that he has communicated frequently with Chinese President Xi Jinping since enforcing broad tariffs on China. However, a spokesperson from China’s Commerce Ministry cast doubt on any active trade negotiations, leaving many to wonder if a deal is realistic at this point. Notably, Beijing has reportedly halted retaliatory tariffs on certain U.S. semiconductors, a move observed earlier this week.
Concurrently, U.S. stock markets rallied, partly influenced by comments from Trump’s administration, indicating that escalating trade tensions with China are not tenable. Aurelie Bathere, of crypto analytics firm Nansen, pointed out that China’s easing of tariffs on semiconductors might signal the end of extreme market anxieties. She noted that the exemptions could ease pressures on affected American industries.
Furthermore, on Wall Street, the S&P 500 and Nasdaq saw gains, with respective increases of 0.74% and 1.26%. The indices are set to conclude the week with significant rises of 4.6% and 6.7%, but they remain below their levels from early April when Trump announced tariffs. Meanwhile, consumer sentiment appears to be falling, now at its lowest since July 2022, as inflation has been soaring.
Experts, like Juan Leon from Bitwise, caution that despite some positive market movements, significant uncertainty still prevails. Leon highlighted Trump’s indecisiveness regarding tariff proposals as a potential roadblock to market stability, suggesting clarity is essential before any real progress can be achieved. Until agreements are solidified, he warns that volatility could continue to plague the markets.
