Bitcoin edged higher on Wednesday, extending gains from a strong rally the previous day as investors digested news of a newly announced U.S.-China trade framework and awaited further details on the deal.
The world’s largest cryptocurrency rose about 1% to $109,850.20 by 10:10 ET (15:10 GMT), maintaining momentum after Tuesday’s surge fueled by hopes of revived trade cooperation between the world’s two largest economies.
Bitcoin remains just below its near-record high of $112,000 reached last month, driven by optimism around increasing legislative support and growing institutional adoption.
Trade Deal Sparks Market Interest
On Tuesday, U.S. and Chinese officials agreed on a broad framework aimed at renewing the Geneva tariff truce by lifting China’s rare earth export restrictions and easing U.S. controls on semiconductors and related technologies.
U.S. Commerce Secretary Howard Lutnick called the rare earths and magnets issue “resolved,” emphasizing that the framework adds substantive detail to earlier Geneva agreements.
While crypto markets found support near record peaks, traders remain cautious pending final approval from U.S. President Donald Trump and Chinese President Xi Jinping, as well as more concrete terms.
Investors Eye U.S. Inflation Data
Market participants also focus on the U.S. consumer price index (CPI) report expected later today. A softer-than-expected inflation reading could increase expectations of a Federal Reserve rate cut this year, benefiting risk assets including Bitcoin.
The sustainability of Bitcoin’s recent rally hinges largely on how forthcoming trade details and economic data unfold.
Altcoins Follow Suit on Optimism
Broader optimism lifted most altcoins on Tuesday:
Ethereum (ETH), the second-largest cryptocurrency, jumped 2.4% to $2,803.18.
XRP rose 2% to $2.3197.
Solana surged 5.7%, Cardano gained 3.9%, and Polygon advanced 7.7%.
Meme tokens also performed strongly, with Dogecoin up 5.1% and $TRUMP adding 1.9%.
The cryptocurrency market’s positive sentiment reflects growing hopes for improved global trade relations and accommodative monetary policy, setting the stage for potential further gains.
Related Topics:
