In another addition to the old Maxime of Wall Street to “buy the rumor, sell the news”, Bitcoin (BTC) managed below after the United States and China announced at least a temporary truce in their trade war.
Bitcoin had pumped higher since the substance of just under $ 75,000 in the days following the price of the liberation day in early April of President Trump. The price finally exceeded $ 100,000 at the end of last week following an agreement with the United Kingdom. China was the gorilla and the BTC almost reached $ 106,000 early Monday after the two countries during the weekend agreed to suspend most of the goods on the other for 90 days.
At the time of the press, Bitcoin was fell to $ 101,300, lower by 3% in the last 24 hours.
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Buy the rumor, sell the news, however, does not apply to American shares today. Shortly before the fence, the Nasdaq is 3.9% higher and the S&P 500 of 3.1%.
What gives? No one can know it with certainty, but the Bitcoin rally at the bottom of April – more than 40% at the top of Monday earlier – had far exceeded that of major American averages. Since Bitcoin was easily the more extensive asset, the important relative underperformance today has a little more meaning.
“Bitcoin has so far been the clear outperformer, largely because it remains isolated from the risks linked to the prices,” said Aurelie Barthere, main research analyst of Nansen, in a shared note with Coindesk. “After the last announcements of Bessent and Greer, I expect Altcoins, American shares and the US dollar, which all underperformed strongly in the first quarter, to start catching up as the wider risk environment improves.”
Despite today’s withdrawal, Kirill Kretov, expert in commercial automation at Coinpanel, noted that the 90 -day pricing break gave the market participants a “short -term signal” which supports risk assets, including crypto, even if the opposite winds could increase without a wider agreement in place once the break is expiring.
“Lower prices facilitate inflationary pressures and improve the global liquidity conditions, which are generally upwards for BTC and other cryptocurrencies,” he said. “However, keep in mind that this is a temporary arrangement; volatility will likely come back as the 90 -day window is approaching its end.”
