Bitcoin surged to a new all-time high after a temporary trade agreement between the United States and China eased macroeconomic fears and boosted investor confidence. <\/p>\n
Bitcoin (BTC<\/a>) set a new high of $109,400 on May 21, rising more than 26% in the past month, according to data from TradingView. This climb to a record high came nine days after the White House announced<\/a> a 90-day trade agreement between the US and China on May 12, temporarily slashing import tariffs to 10%.<\/p>\n BTC\/USD, 1-month chart. Source: Cointelegraph\/<\/em>TradingView<\/em><\/a><\/p>\n The 90-day tariff suspension<\/a> and the cooperative tone in negotiations removed the risk of \u201csudden re-escalation,\u201d which had a significant impact on risk appetite among traditional and cryptocurrency investors, Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen, told Cointelegraph.<\/p>\n US President Donald Trump\u2019s reciprocal tariffs were seen as the biggest macroeconomic threat to traditional equities and cryptocurrency markets in 2025.<\/p>\n Bitcoin briefly fell to a year-to-date low of $74,434 on April 7, five days after Trump announced his reciprocal import tariffs<\/a> on April 2, sending shockwaves across global markets, with the S&P 500 losing more than $5 trillion<\/a> in value, its largest drop to date.<\/p>\n Bitcoin started its recovery on April 9 after Trump\u2019s Liberation Day marked<\/a> the \u201cclimax of uncertainty\u201d for market participants, Micha\u00ebl van de Poppe, founder of MN Consultancy, told Cointelegraph at the time.<\/p>\n Related: <\/strong><\/em>Bitcoin more of a \u2018diversifier\u2019 than safe-haven asset: Report<\/strong><\/em><\/a><\/p>\n Bitcoin kicked off May with a \u201cnear-flawless setup, catalyzed by a rare alignment of geopolitical de-escalation, improving regulatory optics and macroeconomic tailwinds,\u201d according to Jag Kooner, head of derivatives at Bitfinex exchange.<\/p>\n \u201cThe Russia\u2013Ukraine ceasefire talks have defused one of the primary geopolitical volatility engines of the past two years,\u201d Kooner told Cointelegraph, adding:<\/p>\n \u201cRather than triggering capital flight from Bitcoin \u2014 as often seen when risk wanes \u2014 this easing is unlocking a risk-on rotation. We\u2019re seeing capital rotate into BTC and high-beta tech as the need for geopolitical hedging fades, but liquidity remains abundant.\u201d<\/p>\n The capital rotation reflects a \u201cmaturing narrative\u201d as \u201cBitcoin is no longer just a fear hedge \u2014 it\u2019s increasingly a high-conviction risk asset in periods of macro stability,\u201d Kooner said.<\/p>\n Source: <\/em>Donald J. Trump<\/em><\/a><\/p>\n Russia and Ukraine \u201cwill immediately start negotiations towards a Ceasefire and, more importantly, an END to the War,\u201d Trump<\/a> said in a May 19 X post, summarizing his two-hour call with Russian President Vladimir Putin.<\/p>\n Related: <\/strong><\/em>Ukraine strategic Bitcoin reserve bill reportedly in final stages<\/strong><\/em><\/a><\/p>\n Still, funding rates need to remain neutral and open interest stable for a \u201cconsecutive setup\u201d that may ignite a Bitcoin rally to above $114,000 to $120,000, which may be catalyzed by any \u201cmacro or regulatory spark,\u201d Kooner said.<\/p>\n Other analysts have predicted a Bitcoin rally to above $130,000 before the end of 2025, based on BTC\u2019s close correlation with the global money supply.<\/p>\n BTC projection to $132,000 on M2 money supply growth. Source: <\/em>Jamie Coutts<\/em><\/a><\/p>\n The increasing money supply may push Bitcoin\u2019s price above $132,000<\/a> before the end of the year, as investor demand is driven by the growing fiat money debasement, predicted Jamie Coutts, chief crypto analyst at Real Vision.<\/p>\nBitcoin entered May with \u201cnear-flawless setup\u201d<\/h2>\n