Bitcoin Trades Below $102K; Easing Tariff Risks Could Encourage Additional Underperformance

Bitcoin Pullback After U.S.-China Trade Truce as Market Takes a Breather

After weeks of strong gains, Bitcoin has started to dip following the announcement of a temporary trade truce between the U.S. and China.

In a familiar case of “buy the rumor, sell the news,” Bitcoin (BTC) has eased lower after the two global powers agreed to suspend most tariffs on each other’s goods for 90 days. Bitcoin had been on an impressive rally since mid-April, climbing from just below $75,000 to more than $106,000 by Monday morning, fueled by tariff uncertainty and bullish sentiment.

At the time of writing, Bitcoin has retreated to $101,300, a 3% drop in the last 24 hours.

Stock Markets Surge While Bitcoin Takes a Pause

In contrast, U.S. stock indices are experiencing a sharp rise. The Nasdaq is up by 3.9%, and the S&P 500 has gained 3.1%, with investors responding positively to the trade truce. Bitcoin’s rally had significantly outpaced the broader stock market, making its pullback today more understandable given the shift in the market’s risk appetite.

“Bitcoin has been leading the charge lately, mostly because it’s less impacted by the trade tensions,” said Aurelie Barthere, a principal research analyst at Nansen. “Now, with easing global tensions, we may see a catch-up from other assets like U.S. stocks, altcoins, and the dollar, which have been underperforming.”

Short-Term Relief for Crypto and Risk Assets

While Bitcoin’s dip has been notable, experts see the 90-day tariff break as a positive development for risk assets like cryptocurrencies. Kirill Kretov, trading expert at CoinPanel, noted that the truce sends a positive short-term signal for the markets, which should be supportive of risk assets, including crypto.

“Lower tariffs alleviate inflation pressures and help global liquidity, which typically boosts Bitcoin and other cryptocurrencies,” Kretov explained. “However, it’s important to remember this is only a temporary arrangement. Once the 90-day period ends, volatility could return, especially if there’s no broader agreement.”