Bitcoin rises following U.S.-China talks, sparking market enthusiasm; let's examine potential future developments.
Briefly BTC Touches $97K Amidst U.S.-China Talks
Hey there! Today's chat is all about Bitcoin and some ongoing trade talks between the U.S. and China.
Bitcoin had a quick dip to $97K yesterday following a confirmation of U.S.-China discussions in Switzerland for a potential trade agreement. Here's the tea:
The U.S. Treasury Department announced that Secretary Bessent would be meeting with China's lead economic representative during his visit to Switzerland. This meeting might just be the first step towards breaking the tariff impasse, a major obstacle that's been capping BTC's recovery.
Remember how Trump raised tariffs on Chinese imports to 145% back in April? China retaliated with 125% tariffs on U.S. imports. The ensuing uncertainty sent BTC tumbling 15% from $88K to $74.5K. But as things began to look up, BTC bounced back to $96K in late April.
If the talks this month yield positive results, it could push BTC even higher. But it's not all roses — according to prediction site Polymarket, the odds of a U.S.-China trade deal before June are less than 30%.
On the Options market, traders are super bullish, with the 25-Delta Risk Reversal (25RR) being positive for end-May and June expiries. This means there's a 16% chance of BTC rallying to $110K in May, increasing to 28% in June on Deribit.
However, any negative updates from the U.S.-China talks could have a bearish impact on BTC, so keep an eye on that.
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Sources:
- Capriole Investment
- Polymarket
- Deribit
- The potential U.S.-China trade agreement discussions could have a significant impact on the price of Bitcoin, as a break from the tariff impasse might lead to higher BTC prices.
- Traders on the Options market are bullish about the future of Bitcoin, with a 16% chance of BTC rallying to $110K in May and an increase to 28% in June as indicated by the 25-Delta Risk Reversal (25RR) for end-May and June expiries on Deribit.
- Amidst the ongoing U.S.-China trade talks, it's important to remain vigilant, as any negative updates could potentially result in a bearish effect on Bitcoin's price.
