Bitcoin hits new all-time high of $109K as trade war tensions ease
Bitcoin reached a new all-time high of $109,400 on May 21, rising over 26% in a month following a 90-day trade agreement between the US and China that reduced import tariffs to 10%. This agreement alleviated macroeconomic fears and improved investor confidence. The suspension of tariffs removed risks of sudden market re-escalation, positively impacting both traditional and cryptocurrency investors. Bitcoin had previously dropped to a year-to-date low of $74,434 on April 7 after the announcement of reciprocal tariffs by President Trump. Analysts noted that Bitcoin's recent performance reflects a shift from being viewed solely as a hedge against fear to a high-conviction risk asset amid macro stability. Predictions suggest Bitcoin could rally to between $114,000 and $132,000 by the end of 2025, driven by increasing global money supply and investor demand.
