The price of Bitcoin had been on a steep rise since the “Independence Day” tariff shock announced by President Trump in early April, bottoming out just below the $75,000 level.
BTC, which surpassed the $100,000 level again following the agreement made with the UK last week, approached $106,000 early this morning after the agreement reached between China and the US over the weekend, which included the suspension of mutual taxes for 90 days.
However, with the new week, the Bitcoin price started to decline again, falling below the $ 102,000 level. In crypto markets, this decline is associated with the expectation that other asset classes may recover more compared to BTC, along with the improvement in risk perception.
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“Bitcoin has been the best performing asset by far because it is largely insulated from tariff-related risks,” Aurelie Barthere, senior research analyst at Nansen, wrote in a note. Barthere noted that altcoins, U.S. stocks and the dollar could start to recover after their weak performance in the first quarter following the latest statements by Bessent and Greer.
Kirill Kretov, a trading automation expert at CoinPanel, said the temporary tariff pause sent a “clear short-term positive signal” to market participants. He noted that this signal is supportive for risky assets, including crypto assets. “Lower tariffs reduce inflationary pressures and improve global liquidity conditions, which is generally a positive backdrop for Bitcoin and other cryptocurrencies,” he said.
However, Kretov noted that this situation was temporary and warned that “as the end of the 90-day period given to China approaches, volatility may return.”
*This is not investment advice.