Bitcoin Remains Above $94K As Market Awaits US-China Trade Deal Details
The market is cautiously optimistic about the possibility of reaching an agreement, and traders are taking a pause.
Sam Reynolds, Shaurya Malwa | Edited by Parikshit Mishra Updated May 5, 2025, 5:50 AM Published May 5, 2025, 5:26 AM
Key points:
- Bitcoin started the week above $94,500, down 1.2%, ahead of news on US-China trade talks.
- Major Asian markets were closed, reducing trading volumes, while the Chinese yuan and other regional currencies rose.
- Bitcoin faces resistance in the $93K-$95K range, with the possibility of a breakout above $100K if the resistance level is broken.
Bitcoin (BTC) started the trading week above $94,000 as traders awaited news from Beijing on the progress of a trade deal with the United States.
The CoinDesk 20 (CD20) index, which tracks the performance of major digital assets, fell 1.5% to trade below the 2,700 level.
“XRP and Bitcoin have recovered from the tariff shocks in April, but have yet to show significant gains,” Nick Ruck, director of LVRG Research, told CoinDesk in a Telegram post. “Investors may be overly cautious about risk assets like cryptocurrencies due to the current macroeconomic situation in the U.S., despite Bitcoin’s tendency to decrease its correlation with U.S. stocks.”
Major Asian markets were closed on Monday, including Hong Kong, mainland China, Japan and Korea, reducing liquidity and trading volumes.
A potential improvement in US-China trade relations has dominated macroeconomic news. Over the weekend, China’s Commerce Ministry said it was considering a US offer to restart talks, while President Trump hinted that Beijing is “hungry for a deal.”
“We remain optimistic about cryptocurrency prices rising to new levels in the long term as institutional adoption continues to deepen with the launch of Real World Asset (RWA) and integration with crypto platforms,” Rak added.
However, market participants on Polymarket are expressing skepticism, with forecast markets pricing a 21% chance of a trade deal being reached by June and a 47% chance of the White House cutting tariffs by the end of May.
While the details of a potential trade deal remain unclear, markets are reacting. China's yuan has strengthened to a six-month high of around ¥7.19, while regional currencies have also risen.
The biggest gainer was the new Taiwan dollar (NTD), which hit a two-year high of around NTD29.6 per US dollar last week.
The gains were driven by a $1.4 billion (NT$42.9 billion) in foreign capital inflows and increased confidence in Taiwan's tech sector after TSMC posted a 60% jump in quarterly profit. Taiwan's central bank intervened to curb volatility but rejected accusations of political pressure, calling the move a market move.
Limited BTC range?
According to a recent report from Glassnode, BTC's relative stagnation is exacerbated by the fact that it is facing significant resistance on key technical and intraday
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