Bitcoin surged nearly 2% on Tuesday, fueled by renewed investor confidence following positive developments in U.S.-China trade negotiations, even as markets brace for a critical U.S. inflation report later this week.
As of 09:47 ET (14:47 GMT), the world’s leading cryptocurrency traded at $108,941.20, reflecting a notable upswing after a period of subdued, range-bound activity. The optimism stems from hopes that ongoing talks between the U.S. and China will ease global trade tensions and ignite risk appetite across asset classes.
Last month, Bitcoin hit an all-time high near $112,000 amid enthusiasm over expanding legislative support and growing institutional adoption. However, escalating trade concerns subsequently tempered momentum, confining Bitcoin’s price within a narrow band—until today’s rebound.
Progress in U.S.-China Trade Talks Sparks Risk-On Sentiment
Senior U.S. officials, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, met Chinese Vice Premier He Lifeng in London to negotiate tariff reductions, export controls, and broader trade issues. The talks, continuing into a second day, build on a preliminary truce reached in Geneva last May.
Market participants are closely watching the discussions, as a constructive agreement could ease geopolitical uncertainties and boost demand for alternative investments like cryptocurrencies.
Yet, caution persists as investors await Wednesday’s U.S. consumer price index (CPI) release, a key gauge that may sway the U.S. dollar and influence Federal Reserve interest rate policy.
Paraguay President’s X Account Targeted in Bitcoin Scam
In a separate incident highlighting crypto’s growing visibility, Paraguay’s President Santiago Peña’s official X account was reportedly hacked on Monday. A fraudulent post falsely claimed the country adopted Bitcoin as legal tender and announced a $5 million Bitcoin-backed reserve fund.
The Paraguayan government urged the public to disregard any messages from the compromised account and confirmed its national cybersecurity team is collaborating with X’s security experts to investigate the breach.
Altcoins Rally Broadly, Ethereum Leads Gains
The crypto rally extended beyond Bitcoin, with most major altcoins posting significant gains. Ethereum, the second-largest cryptocurrency, surged 8.3% to $2,726.95. XRP climbed 2% to $2.29, while Solana rose 3.5%, Cardano advanced 4.9%, and Polygon gained 5.4%.
Among meme tokens, Dogecoin increased 5.5%, and $TRUMP edged up 3.7%, underscoring a broad-based uplift across the digital asset space.
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