Bitcoin (BTC) prices have been avoided a historic 5-day maximum, but they are not broken. Now, when the illuminated engines and macroeconomic winds have an advantage, we can assume that the next great bullish rally will begin.
On Monday, May 12th, Global Market received one of the most anticipated news of the year. The US and China have reached an agreement to reduce tariffs Pauses most of the mutual speed for 90 days.
It was an immediate relief for a commercial war that had been climbing quickly, and it had an impact on not only the bilateral relationship between both powers, but also the appetite for risk in the financial markets.
The impact of this agreement was not awaited. The future of major US stock market rates, including the S&P 500, Dow Jones and Nasdaq, was upwards at the opening of the day. The dollar has been strengthened against other currencies, with the Chinese yuan reaching its highest level in six months. Even stocks in shipping companies such as Maersk and Hapag-Lloyd have climbed over 10% in anticipation of normalisation in international trade.
This preferred context was also felt in the Bitcoin ecosystem and cryptocurrency. There, enthusiasm became almost evident. The BTC cites about $105,000 at the time of writing this memo, and only about 5,000, close to $110,000 from its historic maximum. The market is clearly in an optimistic mode.
Fear and greedy metrics that measure market sense based on various metrics such as volatility, volume, volume, etc. Momentum Of the prices and internet searches, it is currently marking the level of “greed”.
These types of measurements usually occur at early moments of happiness.
One of the most visible signs of this greed is the rebound of Mimecoin, a cryptocurrency that has no dark technical foundations, but it can attract the attention of thousands of traders in an era of high liquidity and enthusiasm.
As you can see in the following image, some non-series tokens are one of the 10 with the highest rise each week (within the top 100 per market capitalization).
When speculative money returns to Memecoin, it is usually because an appetite for risk has returned. And when that happens, Bitcoin isn’t that late.
Until a few weeks ago, the stages were completely different. The commercial war rose along with new tariffs on dozens of countries imposed by the Trump administration.
As the days passed, the import rate of Chinese goods reached 145%, but China responded with a 125% increase in tariffs and restrictions on exports of US goods and rare earths, essential to the US technology and military industry.
The panorama was tense and uncertain, with inflation risks against supply chain disruption and the potential threat of a global economic slowdown.
However, this May 12 agreement, a temporary and effective 90 days, is being taken as an unexpected positive turn. The parties agreed to dramatically reduce the number of 145% to 30% in the US and 125% to 10% in China. Additionally, formal mechanisms have been established to continue negotiations and avoid future climbing.
As reported by Cryptootics, in parallel with all of this, The expectations for interest rate reductions are potential By the US Federal Reserve at some point in 2025.
Jerome Powell has not confirmed this possibility, but he hasn’t ruled it out either. That was enough for the market to gradually discount it.
The lower commercial tension, expected increased liquidity, and the dollar combination are still strong but stable, creating the best conditions for Bitcoin, an asset that has proven to move strongly when an appetite for risk increases – a new bullish impulse begins.
If the Fed ultimately lowers the rate, or if inflation and growth data are still preferred, the BTC path to the new maximum will become even more clear.
Bitcoin is no longer a marginal bet
This scenario checks what a careful observer has noticed for a long time. Bitcoin is no longer just a value reserve or coverage for inflation. It also acts as a financial asset that addresses the macroeconomic stimulation and humor of global markets.
In other words, BTC is matured as active and is driven by the same factors that move through stock exchanges or bond markets today. The difference is When the sparks light up, Bitcoin usually multiplies the movement of other assets.
So it is not surprising that it will happen in a commercial agreement between the G7 conference, European Central Bank decisions, US employment data, or the price of Bitcoin, directly or indirectly.
The price is around $105,000 and only one step in history, so the market is ready for the possibility of a bullish burst. Technically, if you exceed 110,000, the door to a new price section opens, increasingly diffusing resistance.
But beyond technology, the most important thing today is the financial fuels that begin to accumulate at this stage. There is trustworthy, greedy, liquid, and stability in relations between the world’s major economies (at least for now). And it could translate into an imminent bullish rally in the Bitcoin universe. There is already the fuel needed on the market.
