#TradeWarEases The trade war between the US and China is easing, with both countries cutting tariffs on each other's goods. China will lower tariffs on US goods from 125% to 10%, while the US will cut its tariffs on Chinese products from 145% to 30%. These reduced tariffs will remain in effect for the next 90 days, giving both nations a window for further trade negotiations.
This development has boosted global sentiment, fueling Bitcoin's rally above $104,000. The cryptocurrency market showed a mild reaction, but Bitcoin continued to hold above the crucial $104,000 level, inching closer to $105,000. Analysts predict that Bitcoin could be on the brink of a parabolic move, with potential gains driven by ¹:
- *Institutional FOMO*: Growing interest from institutional investors
- *Spot ETFs*: Increasing adoption of spot ETFs
- *Global Adoption*: Accelerating global adoption of cryptocurrencies
*Impact on Altcoins*
The easing trade war has also led to a decline in Bitcoin dominance, signaling a rotation of capital into altcoins. Some notable effects on altcoins include ¹ ²:
- *Memecoin Surge*: Memecoins have surged 10-30% in 24 hours, indicating potential altcoin season ahead
- *XRP*: Breaking out of its medium-term downtrend, with potential for long-term investment; consider buying if it breaks $2.51
- *Ethereum*: Showing resilience, with some analysts recommending buying in at current prices
- *SUI*: Guarded, with potential to break $5 easily
*What's Next?*
The US CPI inflation data release could influence market sentiment, potentially affecting Bitcoin and altcoin prices. Traders are also watching key events, such as the Binance Alpha launch of NEXPACE (NXPC) trading on May 15, and the upcoming airdrop claims starting May 13 ³.
