Bitcoin starts the week holding steady above the $94,000 mark, with traders on edge as they await potential news from Beijing regarding any progress in U.S.-China trade negotiations. On a day marked by thin trading volumes due to major Asian markets being closed, cryptocurrency markets are navigating a landscape filled with both anticipation and skepticism.
Trade Talks and Market Reactions
As whispers of a potential thaw in U.S.-China trade relations circulate, the cryptocurrency market is keenly observing the developments. Over the weekend, China’s Commerce Ministry indicated they were reviewing a U.S. proposal to resume trade talks, while President Trump suggested that Beijing might be eager to strike a deal. Despite the lack of concrete details, market participants are on high alert. This sentiment echoes recent developments where Bitcoin Jumps Above $97K as Traders Optimistic U.S.-China Trade Deal Possible.
Nick Ruck, director at LVRG Research, shared insights via a Telegram message, noting, “Investors may be overly cautious about risk assets such as crypto due to the current U.S. macroeconomic climate, despite Bitcoin breaking away from its correlation with U.S. equities.” The CoinDesk 20, a benchmark for major digital assets, reflected this caution, dipping 1.5% to trade below 2,700.
The broader macroeconomic picture is influencing sentiment, with the Chinese yuan rallying to a six-month high near ¥7.19, and regional currencies like the New Taiwan Dollar (NTD) experiencing significant gains. The NTD, in particular, surged to a two-year high around NT$29.6 per U.S. dollar, fueled by a robust $1.4 billion in foreign equity inflows and a 60% leap in quarterly profits from tech giant TSMC.
Bitcoin Faces Resistance
Bitcoin’s current price action is a tale of two narratives. On one hand, it is wrestling with significant resistance levels between $93,000 and $95,000—a zone that aligns with both short-term holder cost basis and the 111-day moving average. A recent Glassnode report emphasizes that these levels are a “critical inflection point” for market momentum. The report warns that failing to maintain ground above these levels could thrust Bitcoin back into a consolidation phase, leaving many investors grappling with unrealized losses.
Yet, should Bitcoin manage to punch through this resistance band, the path might clear for a more aggressive ascent. Notably, the report mentions that above $100,000, there’s less sell-side pressure due to a comparatively smaller volume of coins in that range. This scenario could open the doors to new price discovery and potentially a fresh all-time high, as previously discussed in Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow.
The market’s cautious optimism is mirrored by Ruck’s long-term perspective: “We remain optimistic that crypto prices will surge to new highs as institutional adoption continues to deepen with Real World Asset (RWA) launches and integrations with crypto-native platforms.”
The Skepticism Factor
Despite the cautious optimism, not everyone is convinced that a trade deal is imminent. Polymarket prediction platforms are casting doubt, with only a 21% chance of a deal by June and a 47% likelihood of tariff reductions by the end of May. This skepticism underscores a broader uncertainty that continues to weigh on market sentiment.
Moreover, the ongoing U.S.-China trade narrative isn’t the only factor in play. Bitcoin’s price movements also reflect broader macroeconomic currents, including fluctuations in global equity markets and monetary policy shifts. The interplay between these elements and specific technical levels remains a focal point for traders and analysts alike.
Looking Ahead
As the market turns its gaze to the coming weeks, several questions linger. Will Bitcoin break through its current resistance and embark on a new upward trajectory? How will the U.S.-China trade talks influence investor sentiment and market dynamics? And perhaps most crucially, can the recent trends in institutional adoption provide the fuel needed for Bitcoin and other cryptocurrencies to reach unprecedented heights?
These unresolved questions ensure that the cryptocurrency landscape remains as dynamic and unpredictable as ever, with each passing day bringing new developments and surprises. As traders and investors navigate these turbulent waters, one thing is clear: the journey of Bitcoin and the broader crypto market is far from over.
Source
This article is based on: Bitcoin Hovers Above $94K as Market Awaits News on U.S.- China Trade Deal
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
