Bitcoin Could Reach Record Highs Amid U.S.-China Trade Deal and CPI Data
Bitcoin (BTC) may approach record highs, potentially impacting the altcoin market, following a recent U.S.-China trade agreement. Key points include:
- The U.S. and China reached a trade deal after negotiations in Geneva, easing previous tariff disputes.
- This development could influence inflation metrics, with expectations for the April Consumer Price Index (CPI) to show a decrease to 2.3% year-on-year from March's 2.4%.
- Analysts suggest a continued softening of CPI may bolster predictions of Federal Reserve rate cuts, supporting a BTC rally towards $110,000.
- Currently, BTC is trading around $104,000, just under previous highs of $109,350.
- Last week, BTC experienced a 10% increase, driven by inflows into spot exchange-traded funds (ETFs), with BlackRock's ETF seeing over $5 billion in net inflows.
- Ether (ETH) rose 39% last week to $2,500, while major altcoins like XRP, DOGE, ADA, and SOL reported gains of 9.7%, 56%, 19%, and 20%, respectively.
- Stable implied volatility in bitcoin options indicates no current speculative frenzy, suggesting sustained momentum in the market.
- BTC is expected to consolidate between $105,000 and $115,000 as it awaits further triggers for breakout.