- Bitcoin briefly surged to nearly $110,000 after former President Trump announced a U.S.-China trade agreement and CPI data showed lower-than-expected inflation.
- However, uncertainty around vague tariff details caused the rally to stall, with BTC pulling back slightly below the key resistance level.
Trade Agreement Ignites Optimism
Bitcoin surged close to $110,000 after a surprise announcement from former U.S. President Donald Trump regarding a new U.S.-China trade agreement. The deal, shared via Trump’s Truth Social account, outlines a set of tariffs—55% on U.S. exports and 10% on Chinese exports—along with provisions for China to supply rare earth materials upfront. Trump also emphasized the continued enrollment of Chinese students in American universities, framing the relationship as “excellent.”
While full details of the agreement remain vague—especially the interpretation of “total of 55% tariffs”—investors took the news as a potential de-escalation in trade tensions between the world’s two largest economies. The deal awaits final approval from Chinese President Xi Jinping and President Trump.
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CPI Data Calms Inflation Fears
Alongside the trade deal news, the U.S. Consumer Price Index (CPI) data for May showed cooler-than-expected inflation. With a modest 0.1% monthly increase and an annual inflation rate of 2.4%, the figures suggest that recent economic pressures—including anticipated tariff impacts—haven’t yet significantly disrupted consumer prices.
This dual development—lower inflation and improving trade relations—created the perfect storm for bullish sentiment in risk assets like Bitcoin.
Bitcoin Reacts Swiftly
The crypto market, particularly Bitcoin, wasted no time responding. BTC jumped nearly $1,000 within minutes of the news, peaking just shy of the $110,000 mark. However, the rally was short-lived, and BTC now trades about $400 below that key psychological level.
Investors are watching closely to see if further clarity on the tariff details and trade terms will provide the momentum needed for Bitcoin to make a definitive breakout.
A blend of geopolitics and macroeconomics is once again steering Bitcoin’s price. If the U.S.-China deal moves forward smoothly and inflation continues to cool, Bitcoin could finally close above the $110K resistance. But uncertainty around tariff specifics remains a hurdle for sustained gains.
