Bitcoin still at USD $ 109,000 after inflation, negotiations between the US and China

By Hannah Pérez

The inflation news in the US made Bitcoin shrug. On the other hand, commercial negotiations with China and the rate of rate cuts, are of greater interest to the market.

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• Bitcoin is stable around USD $ 109,000 after inflation data in the US.
• The IPC rose less than expected in May, but the market did not flinch.
• Trump said negotiations with China finished and announced new rates.
• The market look is still on commercial developments and the Fed cut.

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After weeks of high volatility, Bitcoin (BTC) seems to find calm near its maximum historical price after the publication of inflation data in the United States and the signs of a possible Trump agreement with China.

The consumer price index (CPI) in the United States rose less than expected in May, with a general rate that increased 2.4% year after year and an underlying IPC that remained unchanged by 2.8%, the Labor Department reported Wednesday.

While the index –widely used to track inflation– He registered his first rebound since January, the reading of the month suggests that the widest trend continues to cooling inflation, sending signals from a robust economy.

The publication of the monthly data was followed by an update of President Donald Trump about negotiations with China.

The main commercial officials of the United States and China gathered at the beginning of the week in London for two -day discussions around tariffs amid prolonged international tensions. The negotiations between the two economic powers have now concludedwhich seems to dissipate the fears of a commercial war.

Trump said Wednesday on his social network account Social truth That the commercial representatives of the United States and China reached a new tariff agreement, pending the final approval of the leaders.

The United States base tariffs on Chinese products will increase to 55% and that China’s tariffs on US products will be set at 10%, Trump explained in the publication. Until a commercial truce last month, the accumulated customs encumbrances that the two countries imposed each other exceeded 240%.

The comment contrasted with that of last week, when Trump said that reaching an agreement with the Chinese president was “difficult“

Commercial agreements favor Bitcoin

The financial market seemed to receive the news with some indifference, with cryptocurrencies registering moderate profits. Bitcoin It emerged slightly price to stabilize in the USD $ 109,000.

Beyond inflation data, markets now seem to have their eyes on the next steps of the United States Federal Reserve (Fed), with commercial developments still staying in the focus.

The news around Trump’s tariffs have been weighing on financial markets, causing strong agitation in cryptocurrencies, since the president announced the new rates the “day of liberation” in April. As the Administration does not pass the page on this issue, the advances may continue to influence the evolution of prices.

“Commercial conversations between the United States and China may have more weight for risk assets, including cryptocurrencies. Progress or setbacks in these discussions could influence a broader feeling of the market ” and determine an upcoming price break, said the research analyst of NansenAurelie Barthere, to The Block.

Crypto Research’s strategist 21SharesMatt Mena, also acknowledged that the new commercial agreement with China adds add to the “Macro winds in tail“, Favoring a potential price rebound. He said the commercial agreements are”Diplomatic victories“What are”helping to restore certain macro, creating a more stable environment for risk assets to recover”

Next cut of the fed in the sights

Meanwhile, the latest inflation data favors the expectation that the Fed cuts interest rates later this year.

After his statement about negotiation with China, Trump also insisted the Central Bank again to reduce the rates. In particular, the president asked the FED to cut a complete percentage point.

Although the tool Fedwatch of Cme Indicates that the market does not expect a rate cut this month, a flexibility later in the year could feed the continuation of the Cryptocurrency Cycle for an upcoming rupture of Bitcoin In the graphics. The next Fed meeting is scheduled for June 17 and 18.

The analysts of Standard Chartered They have established an objective of USD $ 120,000 before July and Bernstein It points to USD $ 200,000 this cycle, with the specialists of both institutions qualifying their projections as “conservative”.

BTC changes hands around USD $ 109,600 at the time of writing these lines, 0.62% higher in the last 24 hours and 2% below its maximum historical price close to $ 112,000 conquered on May 22, according to data from Coinmarketcap.

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Hannah Estefanía Pérez / Diariobitcoin

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