Cryptocurrencies Recover as US-China Trade Tensions Ease – Stocktwits
Cryptocurrencies experienced an upward trend following a turbulent period of uncertainty due to escalating trade tensions between the US and China. Bitcoin, Ethereum, and XRP prices saw positive movement, with Bitcoin reaching $115,220.16, Ethereum climbing to $4,142.30, and XRP standing at $2.54. These gains were reflected across the market, with BNB rising by 14% and Solana by 7%.
The positive momentum in cryptocurrency prices comes on the heels of a significant sell-off triggered by US President Donald Trump’s announcement of 100% tariffs on China in response to export restrictions on rare earth minerals. The ensuing fear of a renewed trade war led to a massive liquidation event in the crypto market, resulting in over $19 billion worth of leveraged positions being wiped out within a day.
However, over the weekend, both sides made efforts to ease tensions. China’s Ministry of Commerce expressed willingness to engage in discussions regarding export restrictions on rare earth minerals, while President Trump expressed optimism about resolving the dispute. In a social media post, Trump reassured the public, stating, “Don’t worry about China… The USA wants to help China, not hurt it!!!”
Retail sentiment regarding Bitcoin on Stocktwits was predominantly bullish, with users expressing optimism about Bitcoin’s potential to reach $140,000 in the near future. Despite outflows of $4.5 million in spot Bitcoin ETFs on Friday, the month overall saw inflows of nearly $6 billion, driven by concerns about the US economy and expectations of monetary policy adjustments.
Institutions also displayed increased activity in the crypto market, with Marathon Digital Holdings, holding a significant amount of Bitcoins, purchasing an additional 400 Bitcoins valued at approximately $45.9 million. This move aligns with a trend observed during previous market corrections, where crypto treasury companies capitalized on lower prices to bolster their holdings.
The overall sentiment in the market remains positive, with investors and analysts alike expressing confidence in the resilience of the ongoing bull market despite recent challenges. As the US-China trade tensions ease and institutional investors increase their involvement in the crypto space, the outlook for cryptocurrencies, including Bitcoin, Ethereum, and XRP, appears promising in the days ahead.
