Bitcoin rallied sharply on Tuesday, climbing 3.8% to $109,404.20 (as of 01:39 ET), fueled by investor optimism over progress in U.S.-China trade negotiations. This boost in risk appetite comes as markets cautiously anticipate a critical U.S. inflation report scheduled for later this week.
After a recent phase of range-bound trading, Bitcoin’s resurgence reflects renewed hopes for a trade deal between the world’s two largest economies. The cryptocurrency had soared to an all-time high of $112,000 last month, driven by legislative support and growing institutional adoption. However, escalating global trade tensions led to a subsequent pullback, with Bitcoin settling into a tighter trading range.
Senior U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, met Chinese Vice Premier He Lifeng in London to discuss tariff reductions, export controls, and broader bilateral trade issues. These talks, continuing into a second day, build on a tentative truce reached in Geneva in May. A positive outcome could enhance geopolitical stability and boost demand for alternative assets like cryptocurrencies.
Despite the upbeat trade developments, many investors remained cautious ahead of Wednesday’s U.S. Consumer Price Index (CPI) release, which is expected to heavily influence the U.S. dollar and interest rate expectations.
In a related crypto security incident, Paraguay’s President Santiago Peña’s official X account was reportedly hacked on Monday. A fraudulent post falsely claimed that Paraguay had adopted Bitcoin as legal tender and announced a $5 million Bitcoin-backed reserve fund. The government urged citizens to disregard any messages from the account pending verification, while the national cybersecurity team collaborates with X to investigate.
Altcoins mirrored Bitcoin’s strong performance, with Ethereum surging 7.6% to $2,668.82, XRP rising 2.5% to $2.2836, Solana up 5.5%, Cardano climbing 6.2%, and Polygon gaining 3.1%. Meme tokens also rallied, as Dogecoin advanced 5.6% and $TRUMP increased 3.5%.
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