China Verifies US Tariff Halt; Bitcoin Approaches All-Time High with Significant Surge to $105k

Bitcoin started the week with a robust hourly increase, rising by 1.7% to hit $105,705 during the early trading hours on Monday.

This rise pushed the cryptocurrency to its peak since the all-time high of $109,356 set in January, generating fresh energy after a month of stagnant movement.

During a one-hour period from 07:00 to 08:00 UTC, Bitcoin surged from roughly $103,200 to just below $106,000, positioning it within 4% of the price discovery levels. Though it has since adjusted slightly to $104,700 at the time of reporting.

This uptick coincides with reported advances in US-China trade negotiations, with Scott Bessent announcing a 90-day pause in tariff actions.

“Following extensive discussions, both the US and China have agreed to a temporary suspension of their reciprocal tariffs, leading to a 115% reduction on both sides.”

This development also aligns with a risk-on mood prevailing in the broader financial markets. Spot gold experienced a decline of 1.4%, dropping to $3,278 per ounce as optimism surrounding trade talks diminished the demand for safe-haven assets.

In contrast, WTI crude oil futures increased by 1.5%, extending a multi-day upward trend. Bitcoin’s movements mirrored this macro shift, rising in tandem with oil and stock markets while diverging from gold.

This trend has become evident during times of lowered risk aversion, indicating that traders may be reclassifying Bitcoin as a macro asset rather than merely a defensive investment.

Investments in Bitcoin spot exchange-traded funds remain a significant factor in market dynamics. Data gathered indicates that total inflows into US-listed spot Bitcoin ETFs have surpassed $41 billion, with $321 million added on Friday alone.

These financial products are absorbing Bitcoin at a pace six times greater than the current mining output. Such inflows amplify upward price pressure, particularly when market liquidity is low and order book depth is shallow.

Technical indicators suggest near-term resistance levels. The relative strength index (RSI) on daily charts is at 73, indicating overbought conditions, and past movements above $105,000 have struggled to maintain their gains.

Price behavior around the $106,000 mark may be crucial, as bids accumulate just beneath this level and limit sell orders start to appear overhead.

The general environment reflects enhanced macro sentiment. Reports indicate that China has confirmed a “suspension of tariff countermeasures,” alleviating investor worries regarding tariffs and global demand.

Consequently, the US dollar has remained relatively stable, with yields lingering near recent lows. This setting is favorable for risk assets and has historically supported increases in cryptocurrency prices.

This development also follows Bitcoin’s climb above $100,000 last week, when renewed inflows and improved market sentiment reversed declines caused by tariffs in April. Traders are now keenly observing for sustained momentum as the asset approaches earlier highs.

While the $105,000 threshold holds significant psychological importance, it acts as a technical midpoint between resistance at $106,400 and support near $102,400.

Activity on Monday positions Bitcoin near the upper limit of its range for 2025. The ability of flows and macroeconomic conditions to sustain a move beyond January’s peak will likely hinge on forthcoming catalysts, such as Tuesday’s US CPI report and comments from the Federal Reserve.

At this moment, Bitcoin’s rebound to $105,000 reestablishes its prominent role in global market risk appetite.