Bitcoin (BTC) climbed to $104,411.95, up 2.67%, edging closer to its all-time high, as easing trade tensions between the U.S. and China and anticipated inflation cooling lifted market sentiment.
Bitcoin’s near-record surge followed a surprise tariff agreement where the U.S. slashed duties on Chinese goods from 145% to 30% for 90 days. China reciprocated by lowering tariffs on American imports from 125% to 10%. The move sent risk assets higher, including cryptocurrencies.
Meanwhile, Ether (ETH) jumped 7.15% to $2,616.62, notching its strongest weekly gain since 2020. Other altcoins also rallied: Dogecoin (DOGE) rose 5.85%, HYPE advanced 9.95%, and PI gained 7.32%, suggesting renewed speculative interest.
Spot Bitcoin exchange-traded funds, led by BlackRock’s iShares Bitcoin Trust, extended their streak of net inflows to 20 consecutive trading sessions, bringing in over $5 billion, according to SoSoValue.
Investor optimism was further supported by expectations that April’s Consumer Price Index, due Tuesday, will show a decline to 2.3% year-over-year from 2.4% in March. A softer CPI reading could strengthen the case for U.S. Federal Reserve rate cuts, which often benefit risk assets like bitcoin.
Volatility levels remain contained. Implied volatility for bitcoin options sits in the 50%55% range, well below the highs seen during past bull cycles. CME Bitcoin futures open interest stands at $14.8 billion, lower than the $20 billion peak seen during the 2020 Trump election cycle, indicating leverage remains manageable.
HTX Research said bitcoin is likely to consolidate between $105,000 and $115,000 unless bond yields rise above 4.8% or ETF inflows slow.
This article first appeared on GuruFocus.
