The price of the first cryptocurrency temporarily rose to $105,700. As a result of the subsequent correction, the quotes retreated to around $104,500.
The sharp price movement of Bitcoin followed the announcement by the U.S. administration about reaching a 90-day 'truce' in the trade war with China. The parties agreed to mutually lower tariffs for this period. The United States — from 145% to 30%, and China — from 125% to 10%.
On the eve of the announcement of the results of the negotiations held in Geneva, some experts suggested that the agreement could act as a catalyst for the growth of cryptocurrency.
"We believe that institutional investors are less afraid to invest in Bitcoin and digital assets as uncertainty in the trade sphere comes to an end and the likelihood of rate cuts increases," said BTSE's Chief Operating Officer Jeff May in a comment to Cointelegraph.
Jupiter Zheng of HashKey Capital supported this view.
"The deal between the U.S. and China could signal stability in global markets, potentially encouraging investors to seek growth opportunities and direct capital into alternative assets," noted the analyst.
The trader known as Daan Crypto, on the contrary, suggested a possible correction in Bitcoin after the agreements between the two largest economies in the world.
"Theoretically, if trade uncertainty was what caused digital gold to rise in price, the asset should stop appreciating after the conclusion of the deal [between the U.S.] and China," explained the expert.
Vincent Liu, Investment Director at Kronos Research, noted in a conversation with The Block that the growth of Bitcoin is supported by a "strong technical momentum." The cryptocurrency is trading above its 50- and 200-day moving averages, he explained.
"Growing institutional adoption and a favorable outlook for 2025 indicate a possible path to another peak," the expert added.
However, BTC Markets analyst Rachel Lucas pointed out that the relative strength index (RSI) of Bitcoin indicates overbought conditions.
"This does not necessarily mean an immediate reversal, but it increases the likelihood of some short-term cooling or sideways movement. A retest and consolidation above the key psychological level of $100,000 would be a healthy development and could lay the foundation for further growth," she emphasized.
Despite the short-term spike, the price of the first cryptocurrency has hardly changed in the last 24 hours. Some leading altcoins showed better dynamics.
In terms of weekly growth, Dogecoin and Ethereum outperformed digital gold by about four times, adding around 10% over the period.
"We are currently witnessing a classic rotation as Bitcoin's dominance reaches levels last seen before the bull market of 2021, and capital begins to flow into altcoins," suggested Presto Research analyst Min Young.
Recall that Standard Chartered urged to buy the first cryptocurrency and forecasted an increase in its quotes to $120,000 in the fourth quarter.
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