The Bitcoin surged past $116,000 overnight from Sunday to Monday, fueled by hopes of a trade deal between the United States and China. Concurrently, crypto-related stocks skyrocketed on Wall Street, invigorated by a wave of optimism rarely felt in months.
Trump reignites risk-taking
Donald Trump, now the sitting president, expressed feeling “very confident” about the imminent signing of an agreement allowing China to continue supplying the United States with rare earth magnets, essential components for electric cars and smartphones, in exchange for tariff relief.
Trump’s remarks, coupled with a conciliatory tone from Treasury Secretary Scott Bessent, were enough to reignite market engines. The Bitcoin briefly touched $116,200 before settling around $115,000, a sign of measured yet palpable euphoria.
Crypto stocks ride the wave
On the stock market, Robinhood surged by 5%, driven by renewed investor appetite for trading platforms. Bitcoin miners and AI infrastructure players like Hut 8, CleanSpark, and IREN progressed by 2% to 3%, riding the market rebound.
However, the star of the day is American Bitcoin (ABTC), the company led by Donald Trump Jr., which announced the purchase of 1,414 additional BTC, bringing its total reserves to 3,865 BTC. The stock soared by over 10%, confirming the growing interest of investors in companies directly exposed to the queen of cryptos.
On the other hand, Circle, the issuer of the USDC stablecoin, dropped by 2.3%, falling victim to a sector rotation in favor of growth stocks and risky assets.
The domino effect on traditional markets
The optimism extended beyond the crypto sector: the Nasdaq gained 1.5%, the S&P 500 nearly 1%, while precious metals, sought after as safe-haven assets in recent months, plummeted. Gold fell by 3.2%, silver by 4.5%.
Investors seem to be betting on a scenario of trade relaxation, coupled with an imminent rate cut by the Federal Reserve. The market is anticipating a 25 basis point reduction in the benchmark interest rate, which would lower the cost of credit and encourage capital flow back into risky assets, led by Bitcoin and tech stocks.
A decisive week ahead
Thursday, Donald Trump is set to meet Xi Jinping to finalize the agreement details. Rare earths, of which China controls approximately 70% of global production, will be at the heart of the discussions. Access to them remains crucial for the American industry, from electric cars to military systems.
The coming days could redefine the balance between geopolitics, innovation, and financial markets. And if the agreement materializes, the current surge in crypto assets could just be a preview of the next bullish cycle.
