Bitcoin prices surged past $93,000 amid optimism over US-China trade relations, with the largest cryptocurrency by market capitalization experiencing its strongest price since early March.
A renewed sense of optimism over the prospects for a thaw in US-China trade tensions has sent bitcoin prices soaring to their highest level since early March.
Market Reaction to Trump’s Comments
President Trump‘s comments on Tuesday afternoon that US tariffs on China ‘will come down substantially’ from the current 145% level sent shockwaves through the markets, with bitcoin surging past $93,000. The largest cryptocurrency by market capitalization rose just shy of $93,400 following Trump‘s remarks, its strongest price since early March.
”will come down substantially”
Altcoins also followed suit, with Ethereum‘s ether (ETH) rising 8% over the past 24 hours above $1,700, and dogecoin (DOGE) and Sui‘s native token (SUI) gaining 8.6% and 11.7%, respectively. The broad-market crypto benchmark CoinDesk 20 Index advanced 5.2%.
Altcoins are alternative cryptocurrencies to Bitcoin, launched after its creation in 2009.
They use similar technology, such as blockchain and cryptography, but offer different features, benefits, or uses.
Over 5,000 altcoins exist, with some notable examples including Ethereum, Litecoin, and Monero.
Altcoins often aim to improve upon Bitcoin's limitations or provide new functionality, such as faster transaction processing times or increased anonymity.
Underlying Market Fragility
Despite the price jump, on-chain data suggests underlying market fragility. Bitcoin‘s apparent demand has decreased by 146,000 BTC over the past 30 days—an improvement from the sharp drop in March, but still negative. CryptoQuant analysts said that bitcoin is now facing a key resistance zone between $91,000 and $92,000 at around the ‘Trader’s On-chain Realized Price‘ metric.
Market liquidity remains soft, with the report using USDT‘s market cap growth as a proxy for crypto liquidity. USDT grew $2.9 billion over the past two months, below its 30-day average. Historically, BTC rallies coincided with USDT growth above $5 billion, a threshold not yet met.
Capital Rotation and Safe-Haven Assets
Analysts at hedge fund QCP Capital noted that as capital rotates into safe-haven and inflation-hedging assets, bitcoin and gold are proving to be key beneficiaries of the exodus from USD risk. They highlighted rejuvenating inflows to spot U.S.-listed BTC ETFs and the return of the so-called Coinbase price premium, suggesting demand from American institutional investors.
Bitcoin resistance looms as market conditions remain bearish according to CryptoQuant‘s on-chain bull score. The report classified current market conditions as bearish, suggesting a pause or pullback could follow if sentiment weakens.
