In another addition to the old Wall Street Maxim of “Buy Rumor, Sell the News,” Bitcoin (BTC) is on its way down after the US and China announced at least one temporary ceasefire in their trade war.
Bitcoin had pumped higher since the bottom of just under $ 75,000 in the days after President Trump’s early April Liberation Day Tariff Shocker. The price finally peaked $ 100,000 late last week after an appointment with the UK. However, China was the gorilla and BTC reached nearly $ 106,000 in the early morning hours of Monday, after the two countries agreed to suspend most tariffs on each other’s goods for 90 days.
At the time of the press, Bitcoin was withdrawn to $ 101,300, lower by 3% over the last 24 hours.
Stock markets wave
Buy the rumor, sell the news, which does not apply to US shares today. Shortly before the closure, Nasdaq is higher with 3.9% and S&P 500 with 3.1%.
What gives? No one can know for sure, but Bitcoin’s Rally from the April Bund – more than 40% on the top earlier Monday – had far outweighed it for the big US average. Given that Bitcoin easily was the more expanded asset, the significant relative underprestiation today makes a little more sense.
“Bitcoin has been the clear better than before, largely because it remains isolated from customs -related risks,” said Aurelie Barthere, head research analyst at Nansen, in a note shared with Coindesk. “After the latest Bessent and Greer messages, I expect Altcoin’s, US shares and the US dollar, all underpinned sharply in the first quarter, to start catching up when the wider risk environment is improving.”
Despite today’s withdrawal, Kirill Kretov, a Coinpanel trading automation expert, noted that the 90-day customs break gave the market participants a “clear, short-term positive signal” that is supportive of risk assets, including crypto, although headwind could rise again without a wider deal in place when the break expires.
“Lower tariffs facilitate inflation pressure and improve the global liquidity conditions, both of which are typically bullish for BTC and other cryptocurrencies,” he said. “Remember, however, that this is a temporary arrangement; volatility is likely to return when the 90-day window approaches its end.”
