Analysts suggest that Bitcoin’s price reaction to a trade deal between the US and China may reveal its status as a safe-haven asset. Following Donald Trump’s announcement of tariffs, Bitcoin showed remarkable resilience, recovering from a low of $75,000 to around $95,000. This performance has prompted speculation about whether Bitcoin's strength is linked to heightened trade uncertainties. One analyst indicated that if trade deal confirmation leads to Bitcoin underperforming, it could suggest that tariffs have a negligible impact on Bitcoin usage. Conversely, some believe that a successful trade deal could boost Bitcoin's price, alongside potential interest rate cuts, as institutional investors might feel more secure investing in cryptocurrencies in a stable market. Researchers also posited that a trade deal could stimulate investment in alternative assets like Bitcoin, especially if it depreciates the dollar or encourages liquidity in emerging markets. Overall, the market awaits definitive news on the trade agreement to assess Bitcoin's future trajectory.

Source 🔗