Bitcoin Surges as Markets Eye Upcoming Trump-Xi Meeting
At last check on Saturday, Bitcoin was above $107,200, recovering from its weekly low of $103,660. This rally has boosted several major cryptocurrencies, including Dash, Morpho, Bittensor, and Aster, which all gained more than 8% in the last 24 hours.
The crypto market’s recovery can be attributed to investors “buying the dip” following a broad crypto sell-off earlier this month. Additionally, growing hopes of a thawing in US-China relations have contributed to the surge. Markets are closely watching the expected meeting between President Trump and President Xi at the APEC summit, as well as the upcoming meeting between Finance Minister Scott Bessent and his counterpart Le Lifeng in Malaysia.
Bitcoin and “Buy the Dip” Sentiment
One possible reason for the rise in Bitcoin price is that investors are buying the dip after most tokens entered a bear market, plunging over 20% from their peak this month. The crypto market is also recovering on hopes that the US and China will de-escalate ahead of the APEC summit.
BitSource: CoinGecko
Trade relations between the US and China are tense, with China’s average tariffs on US exports over 32%, covering 100% of all goods. However, a possible deal between the two countries would be positive for the stock and crypto markets, reducing tensions and inflation risk, and ensuring the Federal Reserve continues to cut interest rates.
The Crypto Rally: A Dead Cat Bounce or a Genuine Recovery?
According to Bloomberg, Chinese officials have stated that the rare earths measure was a response to US provocations, including the extension of sanctions to cover the takeover of subsidiaries of blacklisted companies. However, there is also a risk that the ongoing crypto market rally could be a dead cat bounce (DCB), a situation in which an asset in free fall temporarily recovers and then continues its downward trend.
A good example of a DCB is what happened last week when Bitcoin and other altcoins plummeted after crashing, only to recover and then continue the downward trend. As the crypto market continues to evolve, it is essential to keep a close eye on the upcoming Trump-Xi meeting and its potential impact on the market.
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