As the trade war between the United States and China cools, cautious optimism has emerged within the cryptocurrency market. Under a Geneva agreement, Beijing has agreed to reduce tariffs on U.S. goods from 125% to 10%, while Washington will lower import taxes on Chinese goods from 145% to 30%. This arrangement is set to be in effect for 90 days and will commence on May 14, 2025. Such developments have paved the way for Bitcoin (BTC) to surge above $104,000 and Ethereum (ETH) to gain strength by surpassing the $2,500 threshold.
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The sudden reduction in trade barriers has revived global risk appetite. Futures for U.S. markets, including the S&P 500, Nasdaq, Dow Jones, and Russell 2000, recorded increases exceeding 2% in pre-market trading. Conversely, gold prices fell by 3% following their latest peak test. This scenario indicates a shift in investor preference from safe haven assets to more risky investments.
Bitcoin crossed the $100,000 threshold, peaking at $106,000, influenced by these macro developments. Ethereum also marked its largest daily gain in four years, supported by the successful transition to the Pectra update.
Examining volatility, BTC’s seven-day average volatility edged from 37% to 42%, whereas Ethereum’s volatility experienced a dramatic surge, nearing 90% from 52%, now stabilizing around 80%. Derive.xyz Research Director Dr. Sean Dawson noted that these figures indicate ETH is likely to undergo more aggressive price movements in the future.
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Dawson emphasized the potential for ETH to revisit the $4,000 region and set a reasonable target of $150,000 for Bitcoin. He also suggested that seeing $200,000 by the year’s end is possible if current market conditions persist. Institutional interest and macroeconomic stability appear poised to drive positive momentum in the cryptocurrency market in the coming months.
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