Bitcoin Hits $100,000 Again
The price of bitcoin has broken back above $100,000 for the first time since February, fueled by macroeconomic developments and renewed investor optimism. The rally comes amid surprise remarks from U.S. President Donald Trump’s crypto advisor David Sacks, who issued a rare price prediction for bitcoin.
US-China Agree to Cut Tariffs
In a significant breakthrough, the United States and China have agreed to mutually reduce tariffs on each other for the next 90 days. This move comes after weeks of market volatility driven by trade tensions, and is expected to provide a temporary boost to global markets — including cryptocurrencies.
According to a spokesperson for the Chinese embassy in Washington, the talks were initiated at the request of the U.S. side and are being led by Treasury Secretary Scott Bessent. Trump previously hinted at high tariffs, but now appears to support negotiations and moderation.
What This Means for Bitcoin
Bitcoin had already surged past $100,000 before the tariff reduction deal was reached. Now that the agreement is in place, it could have even further positive effects on the market:
• Investor Sentiment Boosted: Crypto market analysts at Bitbank and Trade Nation noted that bitcoin prices are benefiting from hopes that the U.S.-China discussions will lead to a resumption in stable trade flows.
• Tariff Relief Encourages Flows: With tariffs lowered, capital that was previously held back by global trade fears is now being reallocated — with some of it flowing into bitcoin.
• Extended Risk-On Environment: The temporary easing of trade tensions supports a broader risk-on market environment, potentially sustaining upward momentum in crypto.
The Avalanche Threat to the US Dollar
Separate from trade talks, economists Stephen Jen and Joana Freire warn that a $2.5 trillion sell-off in dollar-denominated assets may be looming. The shift is already being signaled by rising values in currencies like the Taiwan dollar, and could accelerate if the Fed weakens the dollar further through rate cuts.
If that happens, foreign holders of U.S. assets — including China, Taiwan, Vietnam, and Malaysia — may begin offloading their dollar reserves. This would increase the appeal of non-dollar-denominated stores of value like bitcoin.
Fed Rate Cuts Incoming
The Federal Reserve held interest rates steady this week but is widely expected to cut rates this summer, with predictions of 75 basis points in total reductions across 2025. These cuts could weaken the dollar further, giving bitcoin another tailwind.
Institutional Money Flowing In
Geoff Kendrick, head of FX Research at Standard Chartered, highlighted that the narrative around bitcoin has shifted:
• Initially seen as a risky asset
• Then a hedge against U.S. assets
• Now it’s about inflows from ETFs, state treasuries, sovereign funds, and pension institutions
Kendrick even apologized that his $120,000 Q2 bitcoin target might be too low.
Gold-Like Potential
Bill Miller IV of Miller Value Partners predicts bitcoin will continue climbing until it rivals gold’s $20 trillion market cap, citing bitcoin’s unique role as a check on fiat money printing. “We still have a long way to go,” he said, forecasting a long-term price of $1 million per bitcoin.
What to Watch Next
• US-China Trade Talks: If discussions continue positively, expect further confidence in crypto and equities markets.
• Dollar Dynamics: Keep an eye on Asian currency movements and Fed interest rate decisions.
• ETF and Institutional Flows: Spot bitcoin ETF inflows and growing interest from institutional investors are major bullish signals.
Bitcoin is back in six figures — but many believe it’s only the beginning.
