FameEX Hot Topics | Bitcoin Set for $150K Surge as US and China Agree to Cut Tariffs

Bitcoin bulls celebrated a major breakthrough in the ongoing US-China tariff negotiations, which helped push the cryptocurrency past $105,700 for the first time in four months on May 12. This rally has sparked optimism for a continued bullish trend, with analysts setting a $150,000 price target for Bitcoin.

The breakthrough came after US Treasury Secretary Scott Bessent and Chinese Vice President He Lifeng struck a deal in Geneva to reduce tariffs that had strained bilateral trade. Under the agreement, the US will cut tariffs on Chinese goods from 145% to 30%, while China will reduce duties on US imports from 125% to 10%. This accord is seen as a significant step toward easing tensions and fostering improved economic relations between the two nations.

This positive news triggered a broad rally across financial markets, with the S&P 500 futures climbing 2.8%, while the US dollar gained 0.7%. On the other hand, gold saw a 2.3% drop, indicating that investors were shifting away from safe-haven assets in favor of riskier options like Bitcoin. Historically, such improvements in market sentiment and liquidity have tended to fuel Bitcoin rallies.

Bitcoin’s recent surge follows the classic breakout of a bull flag pattern on its weekly chart, often viewed as a signal for continued bullish momentum. The pattern began after Bitcoin reached nearly $110,000 in January and entered a period of downward consolidation within a parallel channel. The breakout above the upper trendline of the flag in early May, coupled with a slight increase in trading volume, confirmed the continuation of the bullish trend.

Analysts now project a price target of around $150,000 for Bitcoin, calculated by adding the initial flagpole height to the breakout point. Momentum indicators, including the relative strength index (RSI), also support a positive outlook, with the weekly RSI bouncing back above 65, signaling strong buying pressure without entering overbought territory.

However, caution is advised as sentiment reaches euphoric levels. Bitwise’s André Dragosch noted that the firm’s Cryptoasset Sentiment Index has hit its highest level since November 2024, a point often followed by short-term corrections or sideways movement in Bitcoin’s price.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.