$BTC Trump’s US-China trade deal could shed light on Bitcoin’s use case
If the trade uncertainty was driving Bitcoin momentum, it should stop outperforming once a trade deal is announced, says an analyst.
Bitcoin’s potential price reaction to#TradeStories a trade deal between the United States and China could give insights into whether Bitcoin is being used as a safe-haven asset in the current market.
Bitcoin
Coutperformed stocks and held up “incredibly strong” during a sharp sell-off on stock markets in April, following Donald Trump’s announcement of tariffs on “Liberation Day,”observedcrypto trader “Daan Crypto” on May 11.
Following its plunge to $75,000 on April 7, Bitcoin recovered strongly to trade 27% higher at around $95,000 by the end of the month. Meanwhile, indexes like the S&P 500 and Nasdaq declined in April.
At the time, people wondered if Bitcoin’s relative strength came from the narrative that countries were using Bitcoin to bypass tariffs. The analyst said the opposite should theoretically occur if the trade deal is confirmed.