US-China Trade Deal Boosts Markets

The US and China reached a trade agreement in Geneva after two days of talks. US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer announced the deal, with a joint statement expected on Monday. The agreement eases the trade war caused by import tariffs exceeding 100%, boosting risk appetite in markets and driving gains in Bitcoin and other crypto assets.

Inflation Data and the Fed’s Role

Tuesday’s CPI data is critical for markets. April’s CPI is expected to fall to 2.3% annually, while core CPI is projected to remain steady at 2.8%. Markus Thielen from 10x Research notes, “If CPI meets expectations, it could be a positive catalyst for Bitcoin.” The Federal Reserve is maintaining interest rates at 4.25%-4.5%, and Chair Jerome Powell’s remarks that inflation is “transitory” have calmed markets. As a result, speculation is growing that Bitcoin could surpass $110,000.

ETF Flows and Altcoin Performance

Bitcoin’s recovery from $75,000 since early April has been fueled by inflows into spot ETFs. BlackRock’s Bitcoin ETF (IBIT) recorded net inflows for 20 consecutive days, amassing over $5 billion in investments. Meanwhile, Ether (ETH) surged 39% last week to $2,500, marking its best performance since December 2020. The altcoin market is also benefiting from Bitcoin’s rally.

HTX states, “If bond yields stay below 4.8% and ETF inflows persist, Bitcoin could consolidate in the $105,000-$115,000 range.” However, higher-than-expected CPI data could spark -term volatility. Investors are closely monitoring the Fed’s interest rate policy and the trade deal’s impact.

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