Close to a new ATH, Bitcoin surges to over $105,000 this Monday morning. The reason: an unexpected trade agreement between the United States and China, which significantly lowers customs duties. A geopolitical relaxation that gives a boost to the crypto market… just before the crucial publication of American inflation data.
The USA and China find an agreement: Bitcoin and the markets explode
After weeks of tariff escalation, Washington announced a temporary reduction in its tariffs on Chinese products from 145% to 30% for a period of 90 days. Beijing countered by lowering its own taxes from 125% to just 10%. Immediate result: a BTC surge of over 10% in a week, pushing the price to $105,500, less than 4% from its all-time high.
Investors applaud this sharp turnaround, especially as the Federal Reserve remains on hold with rates. President Powell suggested that the inflationary impact of tariffs would remain limited and that “the core of inflation looks good.” This fuels speculation about a possible Fed pivot in the coming months.
The market awaits inflation figures
The other imminent catalyst: the American CPI report for April, expected this Tuesday. According to RBC estimates, the consumer price index is expected to slow to 2.3% on an annual basis, down from 2.4% in March. The “core” CPI would remain steady at 2.8%. If confirmed, this disinflation could pave the way for a new BTC peak above $109,000.
Altcoins on fire, volatility under control
It’s not just a Bitcoin rally. Ethereum jumps 40% for the week, reaching $2,600, its best performance since 2020. DOGE soars by 56%, SOL by 20%, and XRP by nearly 10%.
According to HTX Research, implied volatility remains calm (50-55%), far from the extreme peaks seen during previous bull runs. Volumes on CME futures are still reasonable, at $14.8 billion, well below the 2020 peak.
With ETFs still in play, BlackRock has had 20 consecutive days of net inflows totaling $5 billion, and bond yields below 4.8%, everything indicates that Bitcoin could consolidate between $105,000 and $115,000… awaiting the next trigger.
