Bitcoin surpassing $115,000 on the weekend was unexpected for some traders. However, the move came about because of renewed hope in the US-China Trade Negotiations that had reached a preliminarily framework agreement. On Sunday, the leading cryptocurrency rose from $110,960 up to $115,000. This is a significant rise. This momentum is currently being fuelled by the easing of trade tensions between two major economies. Investors are closely watching to see what will happen next.
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Bitcoin Price Forecasts: Bitcoin to Climb Again amidst US-China Trade Talks
Bitcoin Rally is sparked by Trade Framework
Bitcoin’s price soared after U.S. Treasury Sec. Scott Bessent announced that substantial progress was made over the weekend in US-China Trade Talks. Bitcoin’s momentum was fuelled by the relief of avoiding the 100% tariffs that were threatened, which obviously is good news across all risk assets.
U.S. Treasury secretary Scott Bessent In an interview, it was stated:
“President Trump provided significant leverage with the threat of 100% tariffs, and I believe we have achieved a robust framework that avoids them.”
He Lifeng, the Vice-Premier He of China also commented on the agreement.
“Mutual benefit and win-win results define the relationship.”
After two days of intense negotiations, the framework agreement in Kuala Lumpur was signed. It includes China’s commitment to delay rare earth export restrictions and to address chemicals that are used to manufacture fentanyl. The US also secured agriculture deals to benefit American farmers. This adds an additional layer to the trade framework.
Bitcoin Market Reaction and Price Forecast Outlook
Bitcoin’s continued climb over the weekend pushed global crypto market capitalization up by about 1,9%. Ether also rose above $4,040 at the height of this rally. It is trading about 6.5% lower than the all-time record high, set on 6 October at $126,000. Despite this large gap, analysts continue to predict a bullish Bitcoin.
Tiger Research is forecasting a $200,000 Bitcoin price target For the fourth quarter. It is due to several factors, including the global expansion of liquidity, continuing institutional inflows as well as Federal Reserve’s stance on rate cuts. US-China’s trade framework has restored investor confidence. However, on-chain indicators suggest that caution may be needed right now.
Treasury Secretary Bessent also added:
“President Trump gave me great negotiating leverage with the tariff threat. I believe we’ve reached a very substantial framework that will avoid that and allow us to discuss many other things with the Chinese.”
Bitcoin’s momentum is rising ahead of the APEC Summit
Bitcoin could see a further acceleration in its growth as this week’s APEC summit nears. This is where the Chinese and American presidents Xi Jinping and Trump are likely to meet, and perhaps finalize their agreement. The APEC summit is set for this week in South Korea. It’s a meeting that will be crucial for the financial markets and trade relations.
Bitcoin’s recent price rise shows just how vulnerable cryptocurrency markets can be to changes in macroeconomic conditions and geopolitical situations. Myriad users showed a strong bullish mood on Sunday. Market greed spiked to 60% in the morning, before easing back down to 57.4%.
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On-chain metrics, however, have shown some weakness in the current rally. However, key indicators such as the number of transactions and active users are still not confirming the Bitcoin price recovery. According to Tiger Research’s report released Thursday, the trajectory of Bitcoin in near term is uncertain.
Many analysts remain optimistic about the long-term prospects of Bitcoin’s growth despite these concerns. Price action will remain largely influenced by the US-China trading situation in coming weeks and days. Bitcoin could reach new highs by the end of this year if any positive news is released.
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Source: watcher.guru
