Bitcoin Approaching All-Time Highs as Investors Await US-China Trade Talks Outcome
Bitcoin is steadily marching towards its all-time highs. The leading cryptocurrency surpassed the $110,000 mark before pulling back, getting within striking distance of the record of $111,953 set on May 22. Investors have started buying again after a few days of muted trading, hoping that the ongoing negotiations between the United States and China on tariffs and trade tensions will yield positive results.
Yesterday, the two major global powers held an initial round of talks involving Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Chinese Vice President He Lifeng. Today marks the second day of negotiations, with investors eagerly awaiting an outcome. Positive signals are currently being observed following yesterday’s meeting, as participants have commented, but the road ahead remains challenging. President Donald Trump himself has previously stated that doing business with China is no easy task.
Despite claims that Bitcoin serves as a safe haven asset during times of tension, the digital currency actually gains momentum when risk appetite increases. Therefore, in the event of a positive resolution in the US-China negotiations, there is the potential for new record highs according to industry experts. Nonetheless, the market remains cautious, awaiting tomorrow’s inflation data from the US which could influence the Federal Reserve’s interest rate policy. If the inflation readings do not raise concerns, the path to a Federal Reserve rate cut becomes clearer and, in this scenario, investors would be more inclined to seek higher expected returns such as those potentially offered by Bitcoin.
Bitcoin: What Is the Next Price Target?
A new record for the virtual currency could be a significant signal. Many investors may take courage and enter the market. Optimism is growing among market experts. According to Bernstein analysts, Bitcoin could reach $200,000 in a renewed bullish cycle: “there is growing interest in financial innovation generated by blockchain technology supporting Bitcoin as a store of value.” In this context, “real companies and institutional investors are innovating on blockchain,” making its networks “valuable,” as well as “the assets” contained therein. The Bernstein report highlights a greater institutionalization of Bitcoin, which saw a milestone in the launch of spot ETFs after approval by the Securities and Exchange Commission in January 2024. Currently, funds manage around $120 billion in assets, the analysts note.
