Bitcoin Holds Steady Near $104,000 Amid US-China Trade Optimism
Cryptocurrency markets remain buoyant as investors await trade deal details and key US inflation data
Bitcoin Remains Strong Near 3-Month High
Bitcoin is holding firm near $104,000, after surging past the critical $100,000 level last week. As of early Monday, the world’s leading cryptocurrency was trading at around $103,864, marking a stable start to the week following strong gains driven by improving global trade sentiment.
The recent rally, which saw Bitcoin jump over 9% last week, was fuelled by progress in US-UK trade relations and growing optimism around ongoing US-China talks.
US-China Trade Talks Boost Market Sentiment
Markets have responded positively to news of a breakthrough in trade negotiations between Washington and Beijing. While specific terms of the agreement are yet to be revealed, early remarks from both sides suggest meaningful progress.
US Treasury Secretary Scott Bessent described the discussions as “substantial”, and Chinese officials referenced an “important consensus”. These comments have helped maintain confidence across global markets, including crypto.
However, investors are holding back from further bets until more detailed information on the deal is released. The final terms could determine whether Bitcoin continues its upward trend or pulls back.
Upcoming US Inflation Data Adds to Market Caution
In addition to trade developments, markets are bracing for the latest US consumer price index (CPI) data, due out on Tuesday. The figures could provide crucial insight into inflation trends and influence future monetary policy – key factors for crypto valuations.
Adding to the complexity, President Trump is expected to sign an executive order cutting US drug prices by up to 80%. This move has raised concerns over potential deflationary pressures, further contributing to investor caution.
Altcoins Trade Mixed in Cautious Session
While Bitcoin remains steady, other major cryptocurrencies showed mixed results on Monday:
- Ethereum (ETH) slipped 0.4% to $2,510.57
- XRP edged up 0.5% to $2.4003
- Solana (SOL) rose 0.3%, while Cardano (ADA) gained 1.7%
- Polygon (MATIC) dropped over 2%
- Meme coins like Dogecoin (DOGE) jumped 2.7%, and $TRUMP added 0.6%
This range-bound activity highlights a cautious mood across the crypto space as traders await further direction from macroeconomic events.
Bitcoin's Resilience Signals Investor Confidence
Bitcoin’s ability to hold near $104,000 shows strong investor confidence, especially amid global economic uncertainty. The anticipation surrounding the US-China trade deal and key US inflation data will likely shape crypto market trends in the short term.
For UK investors and traders, Bitcoin’s stability and broader crypto developments may signal ongoing opportunities in digital assets, as markets remain sensitive to international trade and economic policy shifts.
Sources: (Investing.com, ChatGPT)
