The US-China Trade Agreement and CPI Data: What Signals Are Hidden Behind Bitcoin's Surge and Retreat?
On June 11, US President Donald Trump announced on his social media platform Truth Social that the US and China have reached a trade agreement, which is currently in the final stages of formal signing.
According to foreign media reports, the agreement includes a total tariff rate of 55% imposed by the US on China, a tariff rate of 10% imposed by China on the US, and China will supply all "necessary rare earths" to the US. He also stated that the relationship between the two countries is "very good" and allows Chinese students to continue studying at US universities.
However, despite mentioning that "the US has imposed a total of 55% tariffs on China," this statement remains quite vague, and it is unclear whether it means that the US tariffs on China will be raised from 30% to 55%. The market is still awaiting further details.
Negotiations for the agreement began on Monday (local time) in London and reached a preliminary consensus in just two days, currently only requiring the signing approval from Chinese leaders and the US president. From Trump's remarks, he seems quite satisfied with the terms of the agreement.
Meanwhile, the consumer price index (CPI) data for May in the US was recently released, showing an annual inflation rate of 2.4%, with a slight increase of 0.1% for the month. According to CNBC, this indicates that the tariffs have not had a significant impact on the US economy, at least for now, which does not align with the concerns of many people previously.
After the announcement of the US-China trade agreement and the release of CPI data, the Bitcoin market reacted swiftly. The price of BTC surged from about $109,000 to $110,000 in just a few minutes.
However, Bitcoin failed to continue rising, and as of now, the price has dropped to $107,749, a decline of 1.6% in the past 24 hours.
Meanwhile, the market is closely watching the impact of the CPI data on Federal Reserve policy. The fluctuations of Bitcoin at key price levels are becoming more intense, and the divergence between bulls and bears is becoming increasingly apparent, seemingly indicating that a significant change in the market is imminent.
Is this a typical script of "good news fully priced in," or a common tactic of major funds washing out positions? The answer remains to be seen!
Do you think this surge and retreat is a short-term adjustment or a trend reversal? What signals will determine the next direction of the market? See you in the comments!
