Bitcoin (BTC) is currently trading above $97,000 during the Asian morning hours, as the market reacts positively to indications that the U.S. and China are working towards a potential trade deal. This development, however, is met with a degree of skepticism regarding the feasibility of reaching an agreement within this month.
A report from China state media revealed, “The U.S. has proactively reached out to China through multiple channels, hoping to hold discussions on the tariff issue.” This proactive stance could signify a shift towards easing the mounting trade tensions.
Among major cryptocurrencies, Dogecoin (DOGE) has emerged as a notable performer, recording a 4% increase in the past 24 hours. Other cryptocurrencies, including Cardano’s ADA, XRP, ether (ETH), and BNB, have also shown positive movement, rising between 1% and 3%. Overall, the CoinDesk 20 (CD20) index has increased by 2.2%.
Conversely, Movement’s MOVE token has faced significant challenges, extending its losses to 21% following the suspension of founder Rushi Manche due to allegations of possible token manipulation, as detailed in a recent CoinDesk exposé.
Despite the optimism, bettors on Polymarket remain skeptical about the likelihood of a trade deal being finalized this month, assigning only a 20% probability for its completion by June. Concerns rooted in the hawkish rhetoric from the White House could be contributing to this cautious outlook.
The tariffs enacted earlier in the year led to a marked decline in Bitcoin’s price, instilling a sense of panic across the market. However, with the current indications of a possible trade detente, discussions surrounding a $100,000 Bitcoin are resurfacing.
Market observers note a generally healthy environment for cryptocurrencies, bolstering the prospect of Bitcoin reaching the $100,000 milestone. A recent market note from trading and technology group Flowdesk states, “Momentum continues to build across crypto with spot flows broadening, alt activity heating up and subtle but meaningful shifts in market structure.” They emphasize that as BTC hovers above $90K, risk appetite appears to be strengthening within both spot and derivative markets.
Liquidity remains robust, characterized by rising volumes, increased weekend trading activity, and improving altcoin depth. Additionally, strong spot buying activity persists, led by speculative altcoins and AI tokens, bolstered by $1.5 billion in Bitcoin ETF inflows, reflecting growing institutional demand.
The market sentiment is further buoyed by the anticipated continued Bitcoin purchases from Strategy, which is in the process of raising $21 billion for additional BTC acquisitions. Recent reports from CoinDesk highlight Michael Saylor’s advocacy for this strategy, indicating a strong push towards further institutionalization.
Presto Research recently noted that investors are increasingly impressed by Strategy’s institutional sophistication, underscored by innovative valuation frameworks and a focus on accurately pricing fixed-income instruments.
Kava Milestone Boosts AI Tokens
A positive sentiment in the market is also observed for Artificial Intelligence (AI) tokens, driven by news from Kava Labs announcing the achievement of 100,000 users on its decentralized AI platform. According to data from CoinGecko, the AI sector has seen a 3% increase, outperforming the CoinDesk 20, which is up by 1.8%.
Scott Stuart from Kava Labs remarked, “People are turning to Kava AI because it offers two things most platforms don’t, verifiability and privacy.” This sentiment reflects a growing interest in decentralized AI solutions among users seeking transparency in contrast to centralized models.
As global interest in Kava and decentralized AI continues to expand, more individuals are acknowledging the value of AI that is both decentralized and transparent, moving away from traditional, opaque systems.
