US-China trade talks are again in focus, with a second round of negotiations currently underway in London. This follows a temporary truce in May that saw some tariff reductions. While the previous agreement spurred a crypto market rally (Bitcoin jumped from $72K to over $104K), the current sentiment is more cautious.
Bitcoin is holding above $105,000 but faces resistance, with analysts suggesting potential for a dip if talks sour. The crypto market generally mirrors broader economic stability; positive trade news could boost risk appetite, while renewed tensions might trigger investor deleveraging and a flight to safety. The outcome of these discussions, alongside upcoming inflation data, will significantly shape crypto's near-term trajectory.
