Record Gains in Bitcoin

The crypto market is alive with bullish optimism again on Thursday, following record moves in the market yesterday. The futures market saw one if its largest single-day gains on record, with the market climbing by $8,895. The 11.5% up move came in response to a shock U-turn from President Trump who announced a 90-day tariff pause for all countries who had not yet actioned countermeasures against the US following Trump’s tariff announcement last week. The news sparked an immediate relief rally across risk assets with equities and commodities prices soaring higher, leading the crypto market higher also.

Sensitive Markets = Volatility Risks

The reaction to the news shows how sensitive wider markets are to the trade war backdrop. As such, while the news is positive, the risk of Trump changing his mind again remains high and as such, volatility risks are elevated near-term. If the tariff pause holds in place, risk sentiment is likely to continue to improve. The key issue now will be the US and China.

US China Focus

Trump has repeatedly said that he feels China wants to do a deal but doesn’t know how. If markets get a proper sense that China is open to negotiation on trade this could help drive the recovery rally further. Looking ahead, BTC prices look poised to gain on any pro-trade news, especially linked to the US and China, while any fresh deterioration in the trade landscape should see prices reversing lower again.

Technical Views

BTC

Yesterday’s bullish engulfing candle has seen the market breaking back above the $80k mark, accompanied by strong bullish divergence in momentum studies readings. While this level holds, focus is on a recovery higher with a test of the $91,750 level the next challenge for bulls.