Impact of US-China Tariff Deal on Bitcoin Price

Jakarta, Pintu News – On May 12, 2025, Bitcoin (BTC) reached a three-month high of $105,720 (approximately Rp1.74 billion), but soon fell to $102,000 (approximately Rp1.68 billion).

This decline came after the announcement of a temporary agreement between the United States and China to suspend import tariffs for 90 days. While this deal was considered positive for the stock market, the price of Bitcoin experienced a correction.

High Correlation with Stock Market

Over the past 30 days, Bitcoin recorded a gain of 24%, while the S&P 500 index rose 7% and gold prices remained stable. The correlation between Bitcoin and the stock market stands at 83%, indicating that BTC price movements are increasingly influenced by traditional market sentiment.

Investors tend to shift funds to stocks that benefit directly from tariff reductions, such as technology and manufacturing companies. This causes demand for hedge assets such as Bitcoin and gold to decline.

Also Read: Bitcoin Approaches Rp1.74 Billion: Trend Analysis and Challenges May 2025

The Effect of Macroeconomics and Liquidity

The strengthening of the US dollar index (DXY) to a 30-day high reflects investors’ growing confidence in the US economy. Although the US Gross Domestic Product (GDP) declined 0.3% in the first quarter, a 6.1% surge in home sales pointed to an economic recovery. This reduced the appeal of assets such as Bitcoin that are often considered a hedge against economic uncertainty.

The Role of Institutional Investors

Companies such as Strategy and BlackRock have accumulated around 1.19 million BTC, equivalent to 6% of the total circulating supply. While this accumulation shows long-term confidence in Bitcoin, some analysts are concerned that this concentration of ownership could affect market liquidity. However, Strategy’s move to increase the capital limit by $21 billion in stock and debt shows their commitment to long-term investment in Bitcoin.

Future Prospects of Bitcoin Price

Despite the price correction, inflows of $2 billion into spot Bitcoin ETFs in the US between May 1 and 9 indicate strong institutional interest. As long as Bitcoin price remains above the psychological support level of $100,000, the medium-term outlook remains positive. However, investors are advised to pay close attention to macroeconomic data, such as the consumer price index (CPI) to be released on May 13, which could affect market sentiment.

Also Read: 3 Altcoins that Catch Analysts’ Attention Amid Positive Market Sentiment: Significant Growth!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Marcel Pechman / Cointelegraph. Bitcoin price sells off after Trump’s US-China tariff deal – Here is why. Accessed May 13, 2025.
• Featured Image: Asia Times