Bitcoin Rises Above $94,000 As US-China Tensions Ease– Rally to Continue?

Bitcoin climbed above $94,000 on Wednesday, reaching a new monthly high as investors responded to easing tensions between the US and China while gold retreated back to $3,300 after briefly ending past $3,500 per ounce. The recovery reflected renewed interest in risk assets amid shifting global macroeconomic signals. The flagship cryptocurrency rose 6.6 percent at the time of press to $94,420, supported by optimism over trade talks and indications that Trump may not pursue aggressive changes in tariff rules against China. This reassessment helped lift sentiment across markets, pushing equities, commodities, and digital assets higher. Gold also experienced a sharp rally, briefly spiking to $3,500 on Tuesday before falling back to $3,300. The sudden reversal is being viewed by analysts as part of a small rotation out of traditional safe havens and into alternative stores of value like Bitcoin. Rising global broad money supply continues to be a major underlying factor supporting gains in both gold and Bitcoin. Historical patterns suggest that while gold typically reacts more quickly to liquidity shifts, Bitcoin tends to follow with a lag of approximately 3 months. The retreat in gold prices, alongside Bitcoin’s surge, is seen by market participants as a signal that investors may be shifting their focus to digital assets, which are considered undervalued compared to gold in the context of inflationary pressures and monetary easing. Some caution remains in the market, with elevated funding rates and softening on-chain metrics presenting potential risks to the Bitcoin rally. Most commentators on X view softening US-China talks as key to BTC rising back above $100,000 in coming weeks, or months.