Following weeks of trade tension between the US and China, the parties announced that they reached a trade agreement after two -day high -level negotiations in Geneva, Switzerland. US Treasury Minister Scott Bessent and Trade Representative Jamieson Greer announced the process to the public with a joint statement on Sunday. The joint statement of the parties is planned to be shared on Monday.
Global effects of the trade agreement and reflections on Bitcoin
The trade war between the US and China climbed the risks of inflation in the global economy, increasing mutual customs duties over 100 percent in recent weeks. Positive US inflation data announced in March were considered by investors and analysts as an indicator on the grounds that it did not fully reflect the rising trade tension. Experts, with the latest developments, this view may have lost its validity.
The Consumer Price Index (CPI) data to be announced in the United States confirms the slowdown in inflation and may increase the likelihood of the US Federal Reserve (FED) interest rate reduction. Such a development, according to analysts Bitcoin $104,489.94 It can open the door to new records in prices. On the other hand, inflation figures above expectations may not prevent the continuation of the positive impact on the markets of the decrease in trade voltage.
Market expectations and mobility in crypto currencies
According to analyst RBC’s expectations, headline inflation is expected to decrease to 2.3 percent on an annual basis. The core inflation that excludes food and energy is expected to remain constant at 2.8 percent. 10X Research says that the general market expectation is that inflation does not change at 2.4 percent in April.
Markus Thielen, 10x Research Founder: “If this expectation occurs, the markets can evaluate inflation data positively. If a negative customs duty news does not come, this week’s inflation data may support the rise.”
Bitcoin is traded at the level of $ 104,000 in the period when the news was written, and there is only 5.1 percent distance to a new record. The crypto currency has shown a rapid recovery from $ 75,000 at the beginning of April, and the price rose by 10 percent, especially last week, with the continuation of investments in spot ETFs.
ETF flows and developments in other crypto currencies
The investment company Blackrock’s Spot Bitcoin ETF (IBIT) has collected over $ 5 billion in a total of over 20 transaction days. The Federal Reserve reiterated that it would act depending on economic data on the next steps, while keeping the policy interest rate constant last week. President Jerome Powell’s explanations containing optimistic messages in monetary policy were welcomed by investors. Powell said that the inflationary effect of trade tariffs would be short -term.
There have been serious increases in other leading crypto currencies such as Ether. Last week, Ether reached $ 2,500 with a value of 39 percent. Other important digital beings tend to rise similarly; 9.7 percent in XRP, 56 percent in Dogge, 19 percent in the island and 20 percent in the left was an increase in value.
Market data provided by HTX Research shows that speculative movements in crypto purchase-sale have not yet overdoed. The volatility implied in Bitcoin options remain stable at 50-55 percent, while the open position of CME Bitcoin futures is still $ 14.8 billion. This amount indicates that it is below the $ 20 billion summit during the US election period.
HTX Research statement: “As long as the returns do not exceed 4.8 percent and ETF entrances last, Bitcoin is likely to consolidate $ 105,000-115,000, and expect the next exit opportunity.”
Signs of decreased tension between the US and China and the slowing of inflation can lead to an increase in life in crypto currency markets. According to analysts’ interpretations, Fed’s policy steps and investor entrances may play an effective role in the testing of new peaks in Bitcoin and leading subcoins in the coming period. In addition to Bitcoin, which is close to historical record levels, the focus of investors has been translated into global economic developments and the US inflation data. While the overall volatility of crypto currencies is low, a new speculative cycle throughout the market has not yet started.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
