Key Points
- Bitcoin’s value surged by 10% following President Trump’s announcement of a 90-day pause on tariffs.
- The ongoing U.S.-China tariff dispute could significantly impact Bitcoin’s future movements.
Bitcoin experienced a 10% surge on the 9th of April, reaching $83.5K, following President Trump’s announcement of a 90-day pause on tariffs against all countries, excluding China.
This rally was also observed in U.S. equities. However, the ongoing tariff dispute between the U.S. and China could potentially influence Bitcoin’s future movements.
Navigating Bitcoin’s Tariff Woes
According to President Trump’s latest update, China was prepared for a deal. Analyst Joe McCann suggests that a potential deal could drive Bitcoin’s value even higher, as such an outcome hasn’t been factored into the current price.
McCann further suggests that a positive agreement with China would likely result in the Yuan (CNY) rallying against the US dollar (USD). However, China is pushing for a weaker CNY.
Jeff Park, Bitwise’s head of alpha, expressed concerns that a weakened Yuan would be detrimental to risk assets, including Bitcoin. Arthur Hayes, BitMEX founder, shared similar concerns, but added that it could result in the Federal Reserve printing more money, which would benefit Bitcoin.
Bitcoin’s Breakout Prospects
Despite the ongoing tariff dispute between the U.S. and China, the market remains cautious. From a price chart perspective, Bitcoin has formed a bullish falling wedge pattern, indicating that the downtrend momentum could soon lose steam, paving the way for recovery.
The bullish RSI divergence also supports Bitcoin’s breakout prospects. As such, last year’s range-high above $70K is a crucial level to watch if macro conditions improve.
