#TradeLessons

Bitcoin Holds Steady Above $100,000 as Global Market Sentiment Turns Risk-On

Bitcoin continues to hold above the $100,000 mark as global market sentiment improves, driven by the U.S.–China trade deal, cooling inflation, and rising expectations of interest rate cuts later this year.

Bitcoin is firmly maintaining its position above the $100,000 mark as global markets enter a distinctly “risk-on” phase, supported by a wave of positive developments such as the U.S.–China trade agreement, cooling inflation, and a notable improvement in investor sentiment.

The cryptocurrency’s rally gained further momentum after the CBOE Volatility Index (VIX) dropped sharply to 20 — a level consistent with its 30-year average — down from a peak of 60 earlier in 2025. This decline followed a trade deal reached between the U.S. and China on May 12, where both sides agreed to suspend new tariffs for 90 days and implement a 115% reduction in current tariffs.

According to Timothy Peterson, an economist specializing in Bitcoin network models, the agreement has reignited a “risk-on” attitude in markets, prompting capital to flow into high-volatility assets such as equities and Bitcoin. He commented:

“The VIX plunged yesterday after news of a potential trade deal with China. It has now returned to normal levels — creating an ideal environment for risk assets.”