Since the start of the year, the cryptocurrency market has certainly struggled. With ongoing macroeconomic concerns and geopolitical tensions, momentum was certainly hard to come by. Yet, that may be set to change, as a US-China trade deal could be a catalyst toward pushing Bitcoin to a new 2025 all-time high.
The leading cryptocurrency soared on news that the two countries had reached a new tariff deal. Specifically, they agreed to halt and lower their present import duty increases over the next 90 days. That has many hopeful that the two sides will be able to come together on a new trade deal. If they do, Bitcoin and a host of other financial markets could be set to benefit.
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US-China Trade Deal Gets Closer After Recent Agreement, and It Could See Bitcoin Explode
In early April, the United States rolled out its new ‘Liberation Day’ tariff plan that instituted a 10% sweeping import tax on all nations. The move was met with reciprocal action, which led the US to only increase the tax. Indeed, the continued reaction saw China facing tariffs as high as 245%, according to the White House.
This had many bracing for a trade war between the two largest economies in the world. However, that may be avoidable, as a deal to cut those tariffs for 90 days has surfaced. Moreover, it has seen the crypto market surge in value. Subsequently, many have pondered if Bitcoin could benefit from a US-China trade deal and reach a new all-time high in 2025.
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The news saw BTC reach heights of $105,000 on Monday. Moreover, the developments have seen it continue a 24% surge that has taken place over the last 30 days, according to CoinMarketCap. Most importantly, it is the highest the cryptocurrency has gone since it reached its $109,356 all-time high in January of this year.
So, could it break through to the $110,000 level if the two sides agree to a new trade deal? Well, it will have some obstacles in its path. Currently, the leading crypto has a key resistance at $106,000, with support at around the $102,400 level. For now, all eyes will be on how traders react to the continued increase and if profit-taking becomes the primary thing standing between Bitcoin and a new landmark price.
