Bitcoin Reaches an All-Time Peak, Breaking its January Record as US-China Tensions Ease

Bitcoin briefly fell to the floor at $74,434 on April 7, just five days after Trump announced his reciprocal tariffs, sending shockwaves across global markets.

Bitcoin reached its highest level on Wednesday, topping the previous January high. The world’s biggest cryptocurrency was up at US$109,760.08, up 1.1% from US$108,117.

A few factors contributed to its risk, such as the reduction in trade tensions between the United States (US) and China and Moody’s, an American financial services company, downgrading the US sovereign debt, encouraging investors to look for alternative investment sources to the dollar.

Antoni Trenchev, co-founder of digital asset trading platform Nexo, says bitcoin is entering the clear sky by gaining momentum and a favorable US regulatory environment now that it surpassed January’s high and the 50% upside from April’s lows reached.

Sometimes, when the investors’ enthusiasm is high, Bitcoin behaves like tech stocks and other assets that rise in value. The tech-heavy Nasdaq has increased 30% since its bottom in early April.

The dollar’s ongoing decline coincided with the Bitcoin situation, which has helped Bitcoin’s exchange rate relative to the US dollar.

Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen, stated that the 90-day tariff suspension and the cooperative negotiation eliminated the risk of sudden re-escalation. It significantly impacted the risk appetite among traditional and cryptocurrency investors.

He added that US President Donald Trump‘s reciprocal tariffs were a massive macroeconomic threat to the traditional stock and cryptocurrency markets.

Bitcoin briefly fell to the floor at $74,434 on April 7, just five days after Trump announced his reciprocal tariffs, sending shockwaves across global markets. The S&P 500 saw its largest decline, shedding over $5 trillion in value.

According to Michaël van de Poppe, founder of MN Consultancy, Trump’s Liberation Day was the “climax of uncertainty” when Bitcoin began to recover on April 9.

Cryptocurrency market participants often attribute the success of cryptocurrency to the growing participation of traditional financial institutions.

Trump summarized his two-hour call with Russian President Vladimir Putin in a May 19 X tweet where he stated that Russia and Ukraine will immediately begin negotiations towards a ceasefire and, more importantly, an end to the war.

Kooner stated that a “consecutive setup” sparked a Bitcoin rally above $114,000 to $120,000.

Many researchers have predicted that Bitcoin will rise above $130,000 before the end of 2025, owing to its strong relationship with the global money supply.

Earlier this month, Coinbase, the largest United States cryptocurrency exchange, was included in the S&P 500 index. This is one of the significant moments in the mainstream cryptocurrency market, which recently got flattered for being an alternative to the financial system.

The US Department of Justice has started investigating the recent data breach at Coinbase. It was a case of 69,461 customers who got hacked personal and financial information that would cost them between US$180 million and US$40 million.

According to Trenche, a target of US$150,000 in 2025 is still very much in the cards.

He added that the cryptocurrency is in year four of the bitcoin price cycle, which is the year after the halving of the cryptocurrency. It means that historically, it still has its best days forward, even with macro uncertainty and the possibility of further volatility.

The United States and China decided to defuse the trade war by agreeing to lower the tariffs they imposed to “punish” each other. Since then, it has been the best news for Bitcoin, but it is not the same for Ethereum.

Ethereum, the next largest cryptocurrency after Bitcoin, was down 0.5% at US$2,513.

The rise in Bitcoin, one of the most valued cryptocurrencies, reflects optimism in the market and a broader shift in international capital flows.