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Trump Extends Pause on Chinese Tariffs, Bitcoin Surges Sharply
U.S. President Donald Trump has unexpectedly announced a 90-day extension to the suspension of tariffs on Chinese goods. The news instantly sparked optimism in the markets, with Bitcoin (BTC) reacting with a sharp price jump.
A Delay That Shook the Markets The original deadline for reimposing tariffs was set for August 12. According to CNBC, Trump signed an executive order pushing that date back, giving markets extra breathing room. Bitcoin reacted immediately, climbing to $119,800 shortly after the announcement. Earlier in the day, BTC even surpassed the $122,000 level, coming close to its all-time high (ATH) of $123,000. However, after the initial euphoria, the price corrected back to $119,000. Analysts point out a CME gap just below this level that the market often fills before continuing an upward trend. This raises the question of whether the rally signals the start of a new bullish phase or is simply a short-lived "dead cat bounce".
Macro Factors Could Play a Key Role Short- to mid-term BTC movements may also be influenced by fresh U.S. economic data. The Consumer Price Index (CPI) and Producer Price Index (PPI) figures released on August 12 and 13 showed a slowdown in inflation, strengthening expectations that the Fed could cut interest rates as early as September. Current market estimates put the probability of a September rate cut at 86.4%, which could provide further support for Bitcoin.
Two Possible Scenarios for BTC Crypto analyst Altcoin Sherpa outlined two potential paths: ๐น Scenario 1: Price pulls back to form a higher low, followed by a more sustainable rally in the weeks ahead.
๐น Scenario 2: BTC retests higher liquidity zones around $120,000, likely in conjunction with major economic events or regulatory developments.
Whether the extension of the Chinese tariff pause will trigger a sustained bullish trend or remains a short-term market reaction will become clear in the days to come.
#TRUMP , #china , #BTC , #cryptotrading , #FederalReserve
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