Bitcoin News: Bitcoin Eyes $110K Record as U.S.–China Trade Deal and CPI Outlook Fuel Bullish Momentum
BTC rallies to Over $105K with market optimism rising ahead of CPI release and easing global trade tensionsBitcoin (BTC) is inching closer to a new all-time high, currently trading around $105,600, as traders react to a breakthrough U.S.–China trade deal and anticipate a softening April Consumer Price Index (CPI) report. These macroeconomic developments, alongside consistent ETF inflows and stable market volatility, are setting the stage for a potential rally above $109,350.Key Drivers Behind the Bitcoin Surge:U.S.–China trade agreement signed in Geneva reduces inflationary riskApril CPI expected to cool to 2.3%, strengthening Fed rate cut betsBitcoin spot ETFs, led by BlackRock’s IBIT, continue strong inflowsBTC up 10% last week, surging from April lows of $75,000Altcoins like ETH, DOGE, ADA, and SOL show double-digit gainsU.S.–China Trade Deal Calms Inflation FearsAfter weeks of escalating tariffs, U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced a formal trade agreement with China on Sunday following Geneva-based negotiations. A joint statement outlining the terms is expected Monday.This resolution ends a tit-for-tat trade war that raised tariffs above 100% and threatened to spike global inflation. The agreement restores stability and reduces forward-looking inflation concerns that had previously muted the impact of March's favorable CPI data.CPI Report Could Unlock Fresh BTC HighsThe April CPI report, scheduled for Tuesday, is expected to show a year-over-year decrease to 2.3%, down from 2.4% in March, according to RBC. Core CPI is forecast to hold steady at 2.8%.“If this expectation holds, the market may view the inflation report as positive. CPI could be bullish and may bring new all-time highs,”said Markus Thielen, founder of 10x Research, in a note to CoinDesk.Spot Bitcoin ETFs Maintain MomentumBlackRock’s IBIT ETF has recorded 20 consecutive days of net inflows, surpassing $5 billion in assets under management, according to SoSoValue. This steady institutional interest has been a major catalyst in Bitcoin’s near V-shaped recovery from $75,000 to over $104,000 in just over a month.Market Conditions Suggest More Room to RallyAccording to HTX Research:Implied volatility (IV) in Bitcoin options remains low at 50–55%, well below the 80%+ peaks of past bubblesCME Bitcoin futures open interest stands at $14.8 billion, still below the 2020 peak of $20BLeverage is moderate, and ETF demand remains consistentAs long as yields stay below 4.8%, Bitcoin is expected to consolidate in the $105K–$115K range, with a breakout likely if CPI cools or additional catalysts emerge.Altcoins Join the RallyThe bullish momentum isn’t limited to Bitcoin:Ether (ETH) surged 39% to $2,500, its best weekly gain since December 2020DOGE rose 56%, while ADA and SOL jumped 19% and 20%, respectivelyXRP also posted strong gains amid broader market optimismNotably, analysts see no signs of speculative frenzy, suggesting the rally could sustain without immediate correction risks.