Bitcoin on the brink of a historic peak thanks to the US-China trade truce

Bitcoin is strongly heading towards registering new record price levels, benefiting from the optimism prevailing in the markets due to the easing of trade tensions between the United States and China, in addition to the anticipation of the US Consumer Price Index data for April, which may indicate a slowdown in inflation, seen as a positive catalyst for the cryptocurrency market.

Bitcoin and other major digital currencies, such as Ethereum and Dogecoin, have witnessed significant increases, supported by continuous cash flows into exchange-traded funds (ETFs) and the stabilization of implied volatility in Bitcoin options, enhancing confidence in the continuation of this upward trend.

US-China trade agreement reduces inflationary concerns and supports risky assets

A trade agreement between the United States and China was announced following high-level talks, easing concerns about a global trade war and its inflationary impact.

Investors had previously ignored US inflation data due to these concerns, but with this agreement, a slowdown in inflation in the upcoming Consumer Price Index data may become a catalyst for the rise of risky assets such as Bitcoin.