Bitcoin Outshines Gold as U.S.-China Trade Thaw Fuels Crypto Rally
Gold bugs, meet your digital disruptor. Bitcoin’s bull run against the ancient store of value just got fresh rocket fuel—U.S.-China trade tensions are easing, and the smart money’s flipping to crypto.
Chart whisperers spot the breakout: BTC’s weekly close against gold paints a clear picture. The king of crypto isn’t just climbing—it’s rewriting the playbook for hedge assets. Meanwhile, Wall Street’s still trying to short physical gold with paper derivatives (good luck with that).
This isn’t your 2017 hype cycle. Institutional flows are real, the halving’s in the rearview, and suddenly everyone remembers fiat currencies lose 98% of their value... eventually. The only question now? How many zeros get added before the next ’correction.’
The bullish technical set-up is consistent with past data that shows BTC tends to catchup with Gold rallies.
Gold’s meteoric rally peaked above $3,500 on April 22, and since then, the SAFE haven yellow metal has pulled back over 8% to $3,211, per TradingView data. During the same time frame, BTC’s price has risen by nearly 19% to $104,000.
With the U.S. and China easing trade tensions early Monday, gold could lose ground while renewed risk-on sentiment powers BTC higher.
The two nations agreed to lower tariffs on goods manufactured in both countries, according to a joint statement released in Geneva. China has proposed to reduce tariffs on U.S goods to 10% from 125% for 90 days. Meanwhile, the U.S. has proposed cutting tariffs on Chinese goods to 30% from 145%.
"The tariff reduction could see a broader return to risk-on positioning, with crypto and equities both likely to benefit from renewed investor confidence and global capital flows," Mena Theodorou, co-founder of crypto exchange Coinstash, told CoinDesk in an email.
"The rally comes as the macro backdrop takes a positive turn: in a landmark move, the U.S. has struck trade deals with both China and the UK, while Putin and Zelensky are set to meet on Thursday to discuss a potential ceasefire. These developments have lifted risk sentiment globally, crypto included," Theodorou added.
