Following a month of explosive gains, bullish sentiment is cooling off after the U.S. and China agreed to a temporary pause in their trade conflict.
What to Know
Bitcoin (BTC) slipped under the $102,000 mark after briefly climbing to nearly $106,000 earlier in the day amid news of a U.S.-China trade agreement.
This represents a modest pullback after a strong rally that began in mid-April, when BTC bottomed below $75,000 following Liberation Day.
With trade tensions easing, some analysts suggest bitcoin may face underperformance ahead.
Reflecting the old Wall Street adage "buy the rumor, sell the news," bitcoin declined following the U.S. and China's decision to halt most tariffs on each other’s goods for 90 days.
After hitting lows near $75,000 in the wake of President Trump's early-April tariff surprise, bitcoin had been steadily climbing. It crossed $100,000 again late last week after the U.S. reached a deal with the U.K., and surged toward $106,000 early Monday after the U.S.-China truce was announced.
At the time of writing, bitcoin had dropped to $101,300, down 3% over the last 24 hours.
Stocks Rally
The "buy the rumor, sell the news" trend didn’t apply to U.S. equities, which rallied sharply. Near the close of trading, the Nasdaq was up 3.9% and the S&P 500 had risen by 3.1%.
Why the divergence? While it's hard to pinpoint exactly, bitcoin’s over 40% rebound from its April lows had far outpaced gains in the major U.S. indices. Its sharper drop today may reflect that extended rally.
“Bitcoin has clearly led performance so far, largely due to its insulation from tariff risks,” said Aurelie Barthere, principal research analyst at Nansen, in a note to CoinDesk. “With recent announcements from Bessent and Greer, I expect altcoins, U.S. stocks, and the dollar—which all lagged in Q1—to start closing the gap as the global risk outlook improves.”
Despite today's decline, Kirill Kretov, a trading automation specialist at CoinPanel, emphasized that the 90-day tariff freeze still delivers a "clear short-term bullish signal" for risk assets, including crypto. That said, market uncertainty could resurface without a long-term agreement once the pause expires.
“Reduced tariffs lower inflation pressure and enhance global liquidity—both of which typically favor BTC and other digital assets,” Kretov noted. “Still, this is a short-term deal; volatility is likely to rise again as the end of the 90-day period nears.
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