Permabull Tom Lee believes that the diffusing trade tensions between the US and China will benefit Bitcoin, Ethereum, as well as US equities.
Bitcoin reached an intraday high of $113,851 earlier this Sunday, according to CoinGecko data.
In the meantime, the Ether price came awfully close to reclaiming the $4,100 level.
Is a full-fledged US-China trade deal happening?
Earlier this month, risk assets took a severe beating after the White House announced 100% tariffs on the world’s second-largest economy. The total amount of liquidated crypto briefly surpassed $19 billion within just 24 hours, which was the largest cryptocurrency wipeout ever.
However, some recent reports show that there are clear signs of de-escalation following high-level talks during the ASEAN summit in Malaysia.
The Washington Post reported earlier today that the US had agreed to postpone 100 tariffs, citing a recent interview with Treasury Secretary Scott Bessent.
In turn, China has agreed to delay controversial curbs on rare earth metals by a year.
There is renewed optimism that a full-fledged trade deal between the two superpowers could happen in the near future.
Renewed bullishness
According to 10x Research, there is renewed optimism around potential Federal Reserve rate cuts after a recent CPI report indicated weaker-than-expected inflation.
However, the fact that Bitcoin remains below the 30-day moving average is viewed as a rather bearish sign.
The cryptocurrency is still down roughly 10% from the all-time peak of $126,080 that was logged earlier this month.
