Bitcoin Eyes $109K as U.S.–China Tariff Cuts Trigger Rally

The U.S. and China cut tariffs in a surprise move, pushing Bitcoin near $105,500. With CPI data expected to ease, the crypto market anticipates a new all-time high above $109,000.

Trade truce fuels Bitcoin surge

Bitcoin surged after the U.S. and China announced mutual tariff cuts following Geneva talks. The U.S. will lower tariffs on Chinese imports from 145% to 30% for 90 days. China will reciprocate, reducing duties on U.S. goods from 125% to 10%.

The announcement pushed Bitcoin above $105,000. As of publication, BTC trades at $105,500, just 3.6% shy of its record high of $109,350, according to CoinDesk.

CPI expectations and market sentiment

While March inflation data was overlooked due to trade tensions, easing tariffs shift the outlook. April’s CPI, due Tuesday, is expected to drop to 2.3% year-on-year, while core CPI remains at 2.8%.

If inflation data confirms the forecast, analysts say it could boost Fed rate cut expectations. That would give Bitcoin another bullish push, potentially breaking above $110,000.

ETF inflows and altcoin momentum

Bitcoin’s sharp V-shaped recovery from $75,000 in April has been driven by ETF inflows. BlackRock’s spot ETF (IBIT) has recorded 20 straight days of net inflows, totaling over $5 billion.

Ether rose 39% last week to $2,500 — its best week since December 2020. Other altcoins followed: XRP +9.7%, DOGE +56%, ADA +19%, and SOL +20%, according to TradingView.

HTX Research notes no signs of speculative excess. Bitcoin option volatility remains stable at 50%–55%, far from the 80%+ seen in past bull runs. With yields under 4.8% and ETF flows steady, Bitcoin may trade in the $105,000–$115,000 range awaiting the next breakout.