Bitcoin Spikes to $106K as U.S.–China Deal Fuels Risk-On Sentiment

Bitcoin’s price touched $106,000 on Monday, buoyed by news of a formal trade accord between the U.S. and China—but the rally didn’t last. The deal outlines 90-day tariffs: 30% on Chinese imports and 10% on American goods, a sharp drop from the earlier projections that topped 100%. The softened policy briefly ignited market optimism, but resistance proved too strong.

Before the trade news broke, BTC held firm near $104K, moving in a tight consolidation channel. The stagnation triggered over $384 million in liquidations within 24 hours, with long traders absorbing $169 million of the hit. Despite the churn, several market observers are eyeing this breakout as a potentially bullish shift.

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Bitcoin ETFs in the U.S. posted solid inflows last week, pulling in nearly $1 billion in fresh capital. Leading the pack—as expected—was BlackRock’s IBIT fund, which alone accounted for $1.03 billion in net inflows, lifting the weekly total to $920.9 million.

Momentum from institutional players is now being echoed by retail sentiment, according to CoinMarketCap:

• The Fear & Greed Index has surged to 73—clear territory for greed.
• Bitcoin’s dominance fell to 62%, driven in part by Ethereum’s increasing market share.
• Meanwhile, the Altseason Index has climbed to 32, suggesting the market is stepping out of Bitcoin’s shadow and inching toward altcoin rotation.

Reading the Сhart

A close above $105,000 clears the way for a run toward the $109,500 ATH—with few resistance zones in between.

• Surpassing that level opens the door to a new ATH.
• A sustained drop below $102K would increase downside risk and trigger correction signals.

Macro Moves and Crypto Momentum

With the U.S. Fed holding rates steady, the market’s gaze moved eastward—to whispers of a U.S.–China trade breakthrough. As anticipation built, Bitcoin surged ahead of the official news, leading some to wonder: was the rally a coincidence—or a signal of potential insider trading leaked before the rest of the world caught on?

Of Interest: Crypto Whale Activity: What It Means for Your Investment Portfolio

Ahead of the official announcement, some analysts framed the trade negotiations as a stabilizing force—one that could rekindle investor appetite for risk-on assets like crypto. The prospect of rate cuts also sparked speculation about an upcoming liquidity cycle that could benefit digital markets.

We believe that institutional investors are less apprehensive about investing in Bitcoin and crypto as US-China trade talks come to a conclusion and the likelihood of rate cuts increases,

said BTSE’s Chief Operations Officer Jeff Mei in an interview with Cointelegraph.

As noted by trader Daan Crypto Trades, Bitcoin may be entering a new phase of its market evolution. Previously seen primarily as a tool to hedge against U.S. sanctions or tariffs, BTC’s sustained momentum following the trade agreement could signal a broader recognition of the asset’s maturity and legitimacy in the global financial system.

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