The reaction to the potential price of Bitcoin to the trade agreement between the United States and China could give insights to see if Bitcoin was being used as a safe haveled asset in the current market.
On May 11, Crypto trader “Don Crypto” was observed, while BitCoin (BTC) improved the stock and stopped “incredibly strong” during a sharp sale on stock markets in April.
After reaching $ 75,000 on April 7, Bitcoin traded 27 % more than $ 95,000 more than the end of the month. Meanwhile, indexes like S&P 500 and Nice Deck decreased in April.
At this time, people wondered if Bitcoin’s power came from the story that countries were using bitcoin to ignore tariffs. Analysts said that if a trade agreement was confirmed, theoretically the opposite should be.
“Theoretically, if the uncertainty of the trade was the one that was making the BTC outfarm, then it should be done better after targeting our most important deal, including China.”
Bitcoin performance since Trump’s “Liberation Day” tariff announcement. Source: Don Crypto
On May 11, the White House announced that talks between the United States and China about the trade agreement have made “progressive progress”. However, no official agreement was announced.
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“We will give details tomorrow, but I can tell you that the conversation was fruitful,” said Scott Basant.
However, if BitCoin continues to perform its work and better, “it is safe to understand that the direct effect of prices has little effect on treating or using BTC,” Dawn concluded.
The Markets are looking forward to the announcement of the trade agreement
However, some analysts believe that if there is a trade agreement, with a potential rate cut, the bitcoin will be jumped if a trade agreement comes.
“We understand that the company’s investors are less afraid to invest in BitCoin and Crypto because the US trade talks reaches a conclusion and increases the chances of cutting rates,” BTSE’s chief Operation Officer, Jeff Mei, told the Quantal Graph.
Meanwhile, Hashki Capital’s researcher Jupiter Zheng said, “A US -China trade agreement could indicate stability in global markets, potentially running for investors to find growth opportunities and send investment in alternative assets.”
“BitCoin can also see new heights as a result, especially if this contract weakens the dollar or leads to a new liquidity flow in the emerging markets.”
Analyst Willemet said on X that only a concrete announcement of the trade agreement is likely to keep its pace.
“It seems that you need a real, solid announcement on the China front so that things can be moved locally, and its pace will start to stop the BTC for the first time,” he said.
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