Bitcoin hovered around $80,000 as U.S. stock markets showed signs of recovery, despite ongoing China-U.S. tensions affecting its potential for growth. With the S&P 500 and Nasdaq rising up to 4.3%, traders remained alert to U.S. trade tariffs and the remarks from President Trump indicating that China seeks to negotiate. Bitcoin supporters noted the yuan's devaluation as part of China’s response to tariffs, which could lead to increased capital flight into Bitcoin. Former BitMEX CEO Arthur Hayes suggested that either the U.S. Federal Reserve or the People’s Bank of China could trigger another Bitcoin rally. In the context of potential rate cuts, analysts predict that the Fed may lower interest rates to mitigate economic slowdowns despite inflation concerns. Current Bitcoin price action remains stable, with critical levels around the 0.382 Fibonacci retracement level on traders' radars for future support. If Bitcoin holds above these levels, the uptrend may continue, even amidst fluctuating market conditions. This analysis does not constitute investment advice and underscores the importance of individual research before trading decisions.

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