TLDR
- Bitcoin trading at $104,271, up over 10% in past week, approaching $109,000 all-time high
- US and China agreed to reduce tariffs for a 90-day period, easing global trade tensions
- Taker Buy-Sell Ratio at 1.02, a level that has marked important price turning points before
- Lower-than-expected US inflation figures increase chances of Federal Reserve rate cuts
- Altcoins outperforming Bitcoin with Ethereum up 8.7% and Dogecoin surging 9.5%
Bitcoin has pushed past the $104,000 mark, continuing its upward trajectory following a substantial price increase over the last seven days. The top cryptocurrency is now trading at $104,271, placing it within striking distance of its all-time high of $109,000.
The recent price action comes as global markets react to improving macroeconomic conditions. At the forefront is a temporary truce in the ongoing trade dispute between the United States and China.
Under the new agreement, the US will cut its tariffs on Chinese goods from 145% to 30%. China will respond by reducing its retaliatory tariffs from 125% to 10%. These changes will remain in effect for a 90-day period.
This cooling of trade tensions has sparked renewed investor confidence across various asset classes. Both traditional markets and cryptocurrencies have benefited from this shift in sentiment.
The weekend saw Bitcoin gain momentum as traders digested the implications of the trade agreement. Technical analysis points to increased buying pressure that could sustain the current rally.
On-Chain Metrics Point to Bullish Outlook
Market analysts have highlighted a key indicator that suggests further upside for Bitcoin. The Taker Buy-Sell Ratio, which tracks the relationship between market buy and sell orders, has reached 1.02.
This particular metric has proven reliable at identifying major market shifts in the past. Similar readings were recorded during the market bottom in late 2022 when Bitcoin traded between $15,000 and $20,000.
The same indicator also flashed before Bitcoin broke above $30,000 in October 2023. Analysts interpret the current reading as a sign that buyers are taking more aggressive positions in the market.
This uptick in buying activity indicates that market participants who are willing to pay the asking price are gaining control. This type of market behavior often precedes continued price appreciation.
Some experts note that while this signal points to potential gains, it has also appeared during periods of increased volatility. These conditions have marked both the beginning and end of previous trends.
Another metric reinforcing the positive outlook is Bitcoin’s realized price. This measure calculates the average price at which all Bitcoin in circulation was last moved.
The realized price continues its upward trend, showing that investors are comfortable buying at progressively higher prices. This pattern contrasts with previous market cycles where realized price reversals preceded major corrections.
Economic Factors Support Crypto Rally
Recent economic data has added to the constructive environment for cryptocurrencies. The latest US Consumer Price Index (CPI) report came in below market expectations.
This softer inflation reading has reduced fears about the potential price impacts of trade tariffs. It has also strengthened the case for potential interest rate cuts by the Federal Reserve.
The prospect of lower interest rates typically benefits risk assets like cryptocurrencies. However, market watchers caution that the Fed remains cautious about inflation risks.
Economic analysts believe the central bank will require clear evidence of economic slowdown before implementing rate cuts. The Fed continues to prioritize its inflation-fighting mandate over short-term growth concerns.
Despite this cautious approach from the Fed, the crypto market has responded positively to the improving economic outlook. Bitcoin’s gains have been outpaced by several altcoins.
Ethereum, the second-largest cryptocurrency, jumped 8.7% to reach $2,667.30. XRP posted a 3.6% increase, bringing its price to $2.5869.
Other altcoins showed even stronger performance. Solana rose by 7%, while Cardano gained 4.8%. Polygon added 6% to its value.
The meme coin sector saw some of the largest moves. Dogecoin surged 9.5%, and Trump-themed token $TRUMP increased by 8.4%.
