Crypto Market Reacts to Trade Agreement Developments
Bitcoin maintained a steady position near $109,600 on Wednesday following a significant price surge in the previous session, as investors analyzed newly announced trade framework discussions between China and the United States while awaiting further details of the potential agreement.
At 02:08 Eastern Time (14:08 Beijing Time), the world’s largest cryptocurrency traded at $109,559.20, showing minimal price movement.
The digital asset’s Tuesday rally came amid growing optimism about a possible trade resolution between the world’s two largest economies, which boosted market risk appetite. Bitcoin currently sits just below its all-time high of $112,000 set last month, when legislative support and institutional adoption prospects drove prices upward.
Traders Monitor Trade Talks and Economic Data
US and Chinese officials reached a broad framework agreement on Tuesday aimed at restoring the Geneva tariff truce by addressing China’s rare earth export restrictions and easing US export controls on semiconductors and related technologies.
US Commerce Secretary Howard Lutnick stated that the rare earth and magnet issues had been “resolved,” describing the framework as adding “substance” to the previous Geneva agreement.
The cryptocurrency market found support below its record highs as participants awaited concrete details of the proposed deal. The framework remains subject to approval by US President Trump and China’s top leadership.
Investors are also focusing on the upcoming US Consumer Price Index (CPI) report, scheduled for release later in the day. A lower-than-expected inflation reading could strengthen market expectations for potential Federal Reserve rate cuts this year, which would further benefit risk assets like bitcoin.
The sustainability of the recent price momentum likely depends on the details of the China-US trade developments, with markets prepared for either continued gains or potential consolidation.
Broader Crypto Market Shows Strength
Tuesday’s trading saw most alternative cryptocurrencies rise amid the general optimism surrounding the proposed trade agreement.
Ethereum, the second-largest cryptocurrency by market capitalization, gained 4.6% to reach $2,783.94.
XRP, the third-largest crypto asset, posted a modest increase of 0.6% to $2.2923.
Solana demonstrated strong performance with a 4.7% gain, while Cardano rose 3% and Polygon advanced 4.5%.
Among meme tokens, Dogecoin increased by 3.5%, and $TRUMP saw a 2.2% uptick.
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