The price of Bitcoin surged above the $115K threshold as concerns over US-China tariffs eased.
Summary
- On Monday, Bitcoin’s value climbed back above $115K following significant liquidation events during Friday, which were driven by US-China trade tensions.
- Market recovery was driven by a notable decrease in the likelihood of 100% tariffs being enacted on China.
As reported by crypto.news, Bitcoin (BTC) rallied back above the $115K resistance point early Monday, after experiencing a nearly 15% drop over the weekend.
This market downturn saw Bitcoin (BTC) fall from approximately $121,560 on October 10 to below $103,000 by Sunday, triggered by U.S. President Donald Trump’s announcement of a potential 100% tariff on Chinese imports starting possibly in early November.
This move, aimed at tightening controls on the export of rare earth minerals crucial for chip manufacturing, ignited fears of a renewed trade conflict and unsettled the crypto markets, resulting in around $20 billion in leveraged liquidations.
Tariff tensions exchanged between major economies usually amplify worries of a global trade conflict, pushing investors to shun riskier assets like cryptocurrencies. Earlier this year, similar anxieties arose when Trump hinted at steep import tariffs on China, later introducing a “fentanyl tariff,” which briefly sent shockwaves through both stock and crypto markets.
At that time, Bitcoin experienced a steep correction as traders sought safety amid concerns over supply chain disruptions and escalating inflation concerns.
Further selling pressure intensified when Binance’s platform momentarily displayed numerous altcoins trading at zero, causing confusion and panic; some reports suggested it might have been a coordinated attack.
Analysts indicated the recent decline in the leading asset was compounded by profit-taking from early investors eager to secure gains after Bitcoin reached a new all-time high last week.
However, as of the latest update, market sentiment regarding Bitcoin appears to be improving. The Crypto Fear & Greed Index has moved out of “extreme fear” and into straightforward “fear,” implying that while investors remain cautious, sentiment is gradually uplifting.
Significantly, alongside Bitcoin’s rise, major altcoins such as Ethereum (ETH), BNB (BNB), XRP (XRP), and Solana (SOL) also gained ground, reflecting increases of 7–13%. This rebound helped raise the total global crypto market capitalization back over $4 trillion.
The shift began shortly after former President Trump alleviated tensions with a recent post on Truth Social, advising “not to worry about China” and emphasizing that the U.S. aims to “assist China, not harm it.” These comments seemed to ease fears of an escalating trade conflict, prompting a relief rally across risk assets, including crypto.
Current data from Polymarket indicates that the probability of a 100% tariff on China being enacted by November 1 has fallen to 17% as of the latest update.
As of the latest update, Bitcoin trading stood at $114,570, reflecting an 11% increase from its recent plummet but still 9% lower than its all-time peak of $126,080.
Bitcoin is Retesting a Golden Cross
Presently, sentiment surrounding Bitcoin has shifted to a bullish tone, with several analysts forecasting further upward movement for the flagship cryptocurrency.
Among those adopting a bullish stance is crypto analyst Mister Crypto, who pointed out that Bitcoin is currently “retesting the golden cross,” a classic bullish indicator that has historically led to significant price rallies. According to the chart, the previous instances of this signal resulted in Bitcoin surging by 2,200% in 2017 and 1,190% in 2020.
“The setup looks extraordinarily strong,” he noted, adding that if Bitcoin maintains its position above the crucial level, its price could “definitely explode” in the upcoming weeks.
Disclosure: This article does not constitute investment advice. The content and materials presented on this page are intended for educational purposes only.
