US-China Trade Developments Cause Bitcoin to Hit $86K
After rising 4.75% on Friday, Bitcoin (BTC) saw a 2.41% increase on Saturday, April 12, closing at $85,379 as of this writing.
Developments in US-China trade increased demand for Bitcoin and the cryptocurrency industry as a whole. On Saturday, April 12, CN Wire revealed a significant development in the US-China trade war
“According to a notice posted late on Friday night by Customs and Border Patrol, which is responsible for collecting tariffs, smartphones, along with routers and selected computers and laptops, would be exempt from reciprocal tariffs, which include the 125% levies Donald Trump has imposed on Chinese imports.”
“It was not immediately clear if smartphones imported from China would still be hit by a 20% levy that was not part of the reciprocal tariffs that Trump started unveiling against China on April 2.”
According to Geiger Capital, which offers market, economic, and political insights, China’s top exports to the US include computers and cellphones.
Import prices and inflation may be less affected by the tariffs’ relaxation, increasing the likelihood of a rate cut by the Fed in June. An increase in risk appetite could result from a more dovish Fed.
Market intelligence website Santiment made the following observation
“Trump’s weekend tariff exemptions have led to an instant crypto market rise. The tech sector is much less impacted by high import costs compared to 24 hours ago, and Bitcoin has already hit a high of $85.9K.”
There are outflows from the US BTC-Spot ETF market.
BTC-spot ETF price movements were still impacted by the escalating US-China trade conflict ahead of the weekend’s events. Weekly flow data for the week ending April 11 revealed the following, per Farside Investors:
The highest net outflow since debut was from the iShares Bitcoin Trust (IBIT), totaling $342.6 million.
The Grayscale Bitcoin Trust (GBTC) reported $160.9 million in net outflows.
The Fidelity Wise Origin Bitcoin Fund (FBTC) had $74.6 million in net withdrawals.
With $2.4 million in inflows, Grayscale Bitcoin Mini Trust (BTC) defied the trend.
In addition to the $165 million withdrawals from the previous week, the US BTC-spot ETF market saw net outflows of $707.9 million overall. On April 11, however, outflows decreased to $1 million, indicating possible stabilization.
ETF flows continue to be an essential indicator of the dynamics of supply and demand and price momentum for Bitcoin.
BTC Price Outlook: Key Drivers
The direction of Bitcoin in the foreseeable future is determined by trading trends, macroeconomic data, the development of the Bitcoin Act, and ETF flows.
Bullish Scenario: Resuming ETF inflows, improving US economic statistics, easing international trade tensions, and advancements on the Bitcoin Act could push Bitcoin closer to its all-time high of $90,000.
Bearish Scenario: Weak US statistics, opposition to the Bitcoin Act, an intensification of the global trade war, and further ETF withdrawals could push Bitcoin closer to $70,000.
To manage crypto risks, see our research and forecasts here for more in-depth information on macro data, regulatory changes, and ETF market flows.
Bitcoin Analysis
Bitcoin remains below the 50-day and 200-day Exponential Moving Averages (EMA) despite advances, indicating bearish market sentiment.
Bulls may be able to target the $90,742 resistance level if they break above the EMAs and the $86,263 resistance level. The critical $100,000 barrier would be reached with a clear rise above $90,742.
The risk is that a decline below $85,000 may put support at $80,000 to the test. The March 11 low of $76,642 might be revealed by a decline through $80,000.
Stay ahead of market trends by accessing real-time BTC price data and technical indicators here.
Ethereum Analysis
In the meantime, ETH is still having trouble, as evidenced by its trading below the 50-day and 200-day EMAs.
A rise toward $2,000 and the 50-day EMA may be indicated by an ETH breakout above $1,750. The $2,308 resistance level can come into play if the price pushes above the 50-day EMA.
For short-term price patterns, ETH-spot ETF flows and trading developments continue to be important.
On the other hand, the low of $1,386 on April 9 would probably be the next significant support level if ETH drops below $1,500.
Final Thoughts
Uncertainties surrounding US-China trade, recession risks, Fed policy, and forthcoming legislation continue to impede Bitcoin’s ascent to $100,000. Nonetheless, market sentiment will continue to be mostly determined by ETF flows, US economic data, and regulatory clarification.
Use up-to-date Bitcoin price information and professional analysis to stay ahead of market trends. Here are our real-time updates on changes in the price of Bitcoin.
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