Bitcoin Jumps as US-China Trade Optimism Lifts Risk Sentiment; Eyes Turn to US Inflation Data
Bitcoin posted strong gains on Tuesday, buoyed by investor optimism surrounding progress in U.S.-China trade negotiations, even as markets remained cautious ahead of a critical U.S. inflation report due later this week.
As of 09:47 ET (14:47 GMT), Bitcoin had risen 1.9% to $108,941.20.
The leading cryptocurrency had recently been trading within a narrow range, but renewed hopes for a breakthrough in trade discussions between the world’s two largest economies helped lift overall market sentiment.
Last month, Bitcoin reached an all-time high of $112,000, supported by growing institutional interest and increased legislative support. However, heightened global trade tensions triggered a pullback, pushing the asset into a more stable, sideways trading pattern.
Progress in US-China Trade Talks Boosts Market Confidence
High-level trade discussions resumed in London, where U.S. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick met with Chinese Vice Premier He Lifeng. Key topics included potential tariff reductions, technology export controls, and broader trade relations.
These negotiations, which follow a tentative agreement reached in Geneva in May, are expected to continue into a second day. A favorable outcome could ease geopolitical tensions and increase demand for riskier, non-traditional assets like cryptocurrencies.
However, caution still lingered in the market, with traders awaiting Wednesday’s release of the U.S. Consumer Price Index (CPI). The inflation data is expected to influence expectations for interest rates and dollar strength, potentially impacting crypto markets.
Paraguayan President’s X Account Likely Compromised in Bitcoin Hoax
In other news, the Paraguayan government announced that President Santiago Peña’s official X (formerly Twitter) account was likely hacked after a false post claimed Paraguay had adopted Bitcoin as legal tender and launched a $5 million Bitcoin reserve fund.
Authorities urged the public to disregard any content from the account until further notice and confirmed that national cybersecurity teams are investigating the breach with support from X.
Altcoins Rally Alongside Bitcoin; Ethereum Surges
Altcoins mirrored Bitcoin’s rally, with broad-based gains across major tokens.
- Ethereum (ETH), the second-largest cryptocurrency, jumped 8.3% to $2,726.95.
- XRP climbed 2% to $2.29.
- Solana rose 3.5%, Cardano gained 4.9%, and Polygon advanced 5.4%.
Among meme coins, Dogecoin increased by 5.5%, while the $TRUMP token rose 3.7%.
