The cryptocurrency market is back in the spotlight. May 2025 could be a turning point for digital assets, as Bitcoin has risen to $105,000 and is approaching its all-time high. The surge is attributed to two key factors — the conclusion of a trade agreement between the US and China and the expectation of the publication of US inflation data.
The US-China trade deal eases trade tensions between the two countries and has implications for international trade. After months of negotiations, Washington and Beijing announced compromises on a range of contentious issues, including tariffs, intellectual property protection and market access. The agreement not only reduces the risk of an escalating trade war, but also boosts investor confidence in the global economy.
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Bitcoin Ready to Renew High After US-China Deal
“The stabilization of relations between the two largest economies is a powerful signal for the markets,” said analyst Michael Chen of Crypto Insights. “Bitcoin’s role as a safe haven in times of uncertainty is now being supported by rising risk appetite amid an improving macroeconomic landscape,” he added.
Inflation and Fed Rates: What’s in Store for the Market?
The second driver of BTC growth is the upcoming US inflation data. If the April 2025 report shows a slowdown in consumer price growth, this could lead to the Fed easing its monetary policy. Lower rates traditionally have a positive effect on crypto assets, making them more attractive against the backdrop of cheaper borrowings. However, experts warn that unexpectedly high inflation figures could cause a correction. “If this expectation is met, the market could view the inflation report as positive. Barring negative headlines about tariffs, this week’s inflation data could be a catalyst for growth,” said Marcus Thielen, founder of 10x Research.
From a technical perspective, BTC is showing a steady uptrend. After breaking the psychological mark of $100,000, Bitcoin reached $105,000. The next target will be a new all-time high, with many analysts expecting growth to $120,000 by the end of the quarter. “CME Bitcoin futures open interest is currently $14.8 billion, which is significantly lower than the $20 billion peak seen during the 2020 Trump election, indicating that leverage is still manageable,” wrote analysts at HTX Research. “Bitcoin will likely consolidate in the $105,000-$115,000 range, waiting for the next breakout,” HTX added.
Despite the positive signs, investors should remain cautious. The trade deal will take time to materialize, and inflation remains an unpredictable factor. However, Bitcoin’s current performance highlights its growing role in the global financial system, where digital assets are increasingly becoming a risk-hedging tool.
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