{"id":26247,"date":"2025-05-12T05:31:38","date_gmt":"2025-05-12T05:31:38","guid":{"rendered":"https:\/\/dogewisperer.com\/bitcoin-eyes-record-high-above-109k-as-u-s-reaches-trade-deal-with-china-inflation-data-looms\/"},"modified":"2025-05-12T05:31:38","modified_gmt":"2025-05-12T05:31:38","slug":"bitcoin-eyes-record-high-above-109k-as-u-s-reaches-trade-deal-with-china-inflation-data-looms","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=26247","title":{"rendered":"Bitcoin Eyes Record High Above $109K as U.S Reaches Trade Deal with China, Inflation Data Looms"},"content":{"rendered":"
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Bitcoin BTC could soon hit record price highs, triggering accelerated gains in the wider altcoin market, as easing U.S.-China trade tensions may see markets react positively to a potential slowdown in the April CPI due this week.<\/p>\n

The United States has reached a trade agreement<\/a> with China after two days of high-level negotiations in Geneva, U.S. Treasury Secretary\u00a0Scott Bessent\u00a0and Trade Representative Jamieson Greer announced on Sunday. Both countries are set to issue a joint statement on the Geneva trade talks later Monday.<\/p>\n

The trade deal comes after weeks of a tit-for-tat trade war that saw both countries raise import tariffs above 100%, threatening to inject inflation into the global economy. As such, the positive March U.S. consumer price inflation data released last month was largely dismissed by investors and analysts as a lagging metric that didn\u2019t accurately reflect the escalating trade tensions.<\/p>\n

The bears, however, cannot make that argument anymore, thanks to the trade deal.<\/p>\n

So, a continued softening of CPI could raise Fed rate cut bets, providing a bullish catalyst for a BTC rally to record highs above $110,000. On the other hand, a hotter-than-expected CPI could be dismissed as backwards-looking, reflecting the April tariffs and not accounting for the de-escalation in trade tensions.<\/p>\n

The CPI due Tuesday is expected to show the cost of living eased to 2.3% year-on-year in April from March’s 2.4%, according to RBC. The core CPI, which excludes food and energy, is expected to have stayed at 2.8% year-over-year in April, with continued moderation in rent inflation.<\/p>\n

According to 10x Research, consensus is that the headline CPI likely held unchanged at 2.4% in April.<\/p>\n

“If this expectation holds, the market may view the inflation report as positive. Barring any negative tariffs headline, this week’s week’s inflation data could provide a bullish catalyst,” Markus Thielen, founder of 10x Research<\/a>, told CoinDesk.<\/p>\n

“CPI could be bullish, and may bring new all-time highs,” Thielen added.<\/p>\n

Bitcoin, the leading cryptocurrency by market value, changed hands at around $104,000, just 5.1% short of hitting new highs above $109,350, CoinDesk data show.<\/p>\n

BTC has had a near V-shaped recovery from $75,000 since early April, with prices surging 10% last week due to continued inflows into the spot exchange-traded funds (ETFs).<\/p>\n

BlackRock’s spot bitcoin ETF (IBIT) has registered net inflows for 20 straight trading days, amassing over $5 billion in investor money, according to SoSoValue data. Last week, the Federal Reserve kept the benchmark borrowing cost unchanged in the range of 4.25% to 4.5%, while reiterating the data-dependent stance on potential rate cuts. Chairman Jerome Powell, however, offered dovish hints, saying “the underlying inflation picture is good,” while calling the inflationary impact of tariffs short-lived.<\/p>\n

Ether, the second-largest cryptocurrency by market value, rose 39% to $2,500 last week, the best performance since December 2020, according to TradingView. Other major altcoins such as XRP, DOGE, ADA and SOL surged 9.7%, 56%, 19% and 20%, respectively.<\/p>\n

According to HTX Research, there are no signs of speculative frenzy yet, meaning the rally could continue.<\/p>\n

“Implied volatility (IV) in bitcoin options remains stable in the 50%\u201355% range, far below the extreme levels of 80%+ typically seen at the peak of past bull markets. CME Bitcoin futures open interest currently stands at $14.8 billion, well below the $20 billion peak observed during the 2020 Trump election period, indicating that leverage is still manageable,” HTX Research said.<\/p>\n

“As long as yields do not climb back above 4.8% and ETF inflows remain steady, Bitcoin is likely to consolidate in the $105,000\u2013$115,000 range while awaiting the next breakout trigger,” HTX added.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Bitcoin BTC could soon hit record price highs, triggering accelerated gains in the wider altcoin market, as easing U.S.-China trade tensions may see markets react positively to a potential slowdown in the April CPI due this week. The United States has reached a trade agreement with China after two days of high-level negotiations in Geneva, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-26247","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/26247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26247"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/26247\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}