U.S.-China Trade Detente Sends Crypto Bulls Charging—Wall Street Still Doesn’t Get It
Geopolitical thaw triggers digital asset rally as traders bet on risk-on sentiment
Bitcoin and altcoins surge on reduced regulatory overhang—meanwhile, traditional finance scrambles to explain the ’irrational’ move
DeFi protocols see record inflows while hedge funds miss yet another asymmetric trade
$103,906 to surge above $104,000 and Ethereum (ETH)
$2,535 to gain strength by surpassing the $2,500 threshold.
ContentsTransformation in U.S.-China Trade TensionsCryptocurrency Price Performance Shines
Transformation in U.S.-China Trade Tensions
The sudden reduction in trade barriers has revived global risk appetite. Futures for U.S. markets, including the S&P 500, Nasdaq, Dow Jones, and Russell 2000, recorded increases exceeding 2% in pre-market trading. Conversely, gold prices fell by 3% following their latest peak test. This scenario indicates a shift in investor preference from SAFE haven assets to more risky investments.
Renowned cryptocurrency investor and Maelstrom CIO, Arthur Hayes, encouraged traders to “buy everything” in an X post, giving a green light to the market. According to Hayes, the easing of trade barriers will moderately alleviate inflation pressures and enhance liquidity. Cryptocurrency investors perceive this as an unprecedented opportunity period.
Cryptocurrency Price Performance Shines
Bitcoin crossed the $100,000 threshold, peaking at $106,000, influenced by these macro developments. ethereum also marked its largest daily gain in four years, supported by the successful transition to the Pectra update.
Examining volatility, BTC’s seven-day average volatility edged from 37% to 42%, whereas Ethereum’s volatility experienced a dramatic surge, nearing 90% from 52%, now stabilizing around 80%. Derive.xyz Research Director Dr. Sean Dawson noted that these figures indicate ETH is likely to undergo more aggressive price movements in the future.
Dawson emphasized the potential for ETH to revisit the $4,000 region and set a reasonable target of $150,000 for Bitcoin. He also suggested that seeing $200,000 by the year’s end is possible if current market conditions persist. Institutional interest and macroeconomic stability appear poised to drive positive momentum in the cryptocurrency market in the coming months.
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