Bulls Capitalize on U.S./China Deal Advances

In a twist to the classic adage of “buy the rumor, sell the news,” bitcoin (BTC) has seen a decrease following a temporary agreement between the U.S. and China regarding their trade conflict.

The cryptocurrency had been on an upward trajectory since it fell to just below $75,000 after a surprise tariff announcement from President Trump in early April. Bitcoin eventually climbed above $100,000 late last week when the UK also reached a deal, but it was the agreement with China that pushed BTC close to $106,000 during early trading on Monday after both nations decided to halt most tariffs on each other’s products for a period of 90 days.

As of the latest update, bitcoin’s value had declined to $101,300, reflecting a 3% drop within the last 24 hours.

### Stock market gains

The principle of “buy the rumor, sell the news” appears to apply differently to U.S. stock markets today. Just before market close, the Nasdaq was up by 3.9%, while the S&P 500 increased by 3.1%.

The underlying rationale for this divergence remains unclear. However, the remarkable rebound of bitcoin from its April lows—over 40% at its peak earlier on Monday—has significantly outperformed major U.S. indices. Given bitcoin’s more extended growth spurt, the relative drop observed today starts to make sense.

“Bitcoin has clearly outperformed other assets to date, largely because it is less affected by tariff-related uncertainties,” observed Aurelie Barthere, a principal research analyst at Nansen. “With the recent announcements, I anticipate a rebound in altcoins, U.S. stocks, and the U.S. dollar, which all faced significant headwinds in the first quarter, as market sentiment improves.”

Even with the current decline, Kirill Kretov, a trading automation specialist at CoinPanel, emphasized that the 90-day tariff suspension serves as a “clear short-term positive indicator” for risk assets like cryptocurrencies, despite potential challenges resurfacing once the temporary ceasefire ends.

“Reduced tariffs diminish inflationary pressures and enhance global liquidity, both of which typically favor bitcoin and other digital currencies,” he remarked. “However, it’s essential to note that this is merely a short-term agreement; we can expect heightened volatility as the 90-day timeframe approaches its conclusion.”