Bitcoin Surges Above $105,000 Amid U.S.-China Trade Optimism; Mixed Performance in Altcoins
May 12, 2025
By ETMarkets.com
Bitcoin, the leading cryptocurrency, has witnessed a significant price increase, surging above $105,000 on Monday as optimism surrounding the U.S.-China trade discussions spurred market activity and investor confidence. As of midday trading, Bitcoin was reported at approximately $103,914 after reaching an intraday high of $105,039. ## Market Sentiment and Trade Developments
The positive movement in Bitcoin’s price correlates with reports suggesting the U.S. may consider reducing tariffs on Chinese imports. While no formal agreement has been established, the anticipation of a potential rollback of tariffs has contributed to a bullish sentiment in both the cryptocurrency market and broader financial sectors. Analysts believe that this optimism might help avert a looming global recession.
Vikram Subburaj, CEO of Giottus Crypto Platform, commented on the market’s direction: “The market is still bullish, especially with a possible U.S.-China trade deal on the way. If Bitcoin stays above $105,000, it could hit new highs soon.”
Bitcoin’s Market Performance
Bitcoin’s recent gains have propelled its market capitalization to approximately $2.067 trillion, with daily trading volume increasing by 4% to reach $46.32 billion. Overall, the cryptocurrency market capitalization has reached $3.46 trillion, despite experiencing a modest decrease of 2% in the last 24 hours.
Technical analysts are noting the strong upward momentum in Bitcoin’s trajectory. Piyush Walke, an analyst at Delta Exchange, pointed out that Bitcoin has recently broken out of a bullish chart pattern, raising expectations of a continued upward trend. "If the breakout holds, Bitcoin could rise to $115,600," he said, while also cautioning that resistance might emerge around the $107,000 mark.
Caution Amid Optimism
Despite the bullish outlook, some experts urge caution regarding a possible short-term pullback. Sathvik Vishwanath, CEO of Unocoin, observed that technical indicators currently indicate overbought conditions for Bitcoin. “Key support lies at $100,000, and resistance is at $106,265,” he stated.
Mixed Results Among Altcoins
In contrast to Bitcoin’s bullish performance, altcoins exhibited mixed results. Ethereum experienced a slight decline but remained above the $2,500 mark. Meanwhile, other cryptocurrencies, including Dogecoin, Cardano, Sui, Chainlink, and Shiba Inu, gained between 1% to 3%. Notably, Pi coin emerged as the top performer of the day, surging more than 40%.
Market sentiment continues to show a positive trend. The Crypto Fear & Greed Index, which measures investor sentiment, rose to 73, indicating increased confidence among investors. Additionally, more than 110,000 Bitcoin have been withdrawn from exchanges in the past month, a move typically viewed as a bullish sign, indicating that investors are inclined to hold rather than sell.
As the cryptocurrency landscape evolves, investors remain watchful of both macroeconomic trends and market signals as they contemplate potential opportunities and risks in this fluctuating environment.
Disclaimer: The recommendations, views, and opinions expressed by experts do not necessarily represent the views of the Economic Times.
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