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One would’ve thought a trade deal between the US and China would send Bitcoin soaring, especially considering how markets reacted when both nations were lobbing reciprocal tariffs at each other. Traditional markets certainly obliged: the S&P 500 climbed over 3%, the Nasdaq added 2%, and gold slipped 2.72%—a textbook ‘risk-on’ response.
Yet, Bitcoin played it differently.
Despite a brief intraday rally above $105K, Bitcoin retraced sharply to touch $100K before closing the day down just over 1%. No need for panic—after an impressive run over the past few weeks, minor pullbacks are not only expected but healthy. These cooling-off phases are opportunities to accumulate more Bitcoin and strong-performing altcoins ahead of the next move higher.
The Deal in Detail
The terms of the agreement are straightforward but telling:
- United States: Cuts tariffs on Chinese goods from 145% to 30% for 90 days.
- China: Lowers tariffs on US goods from 125% to 10% for 90 days.
This temporary truce marks the first step in de-escalating the tariff war between the two superpowers. However, the ultimate goals and timeline remain murky. Still, markets have embraced the progress, with the S&P 500 now officially back in bull market territory—closing up 20% from its April low. Quite the reversal, considering it was flirting with bear market status not long ago.
Bitcoin, of course, is already deep into its own bull market, simply digesting a correction.
Coinbase Joins the Big Leagues
In a year of crypto milestones, here comes another: Coinbase is set to join the S&P 500, becoming the first and only cryptocurrency company in the index. The announcement sparked a 5% rally in COIN shares, with industry titans like Michael Saylor weighing in:
“A major milestone for Coinbase and for Bitcoin.”
This inclusion not only legitimises the space further but also reflects the maturing integration of crypto into traditional finance.
Eyes on CPI: Inflation in Focus
While the tariff truce has captured headlines, tonight's US CPI release at 10:30pm AEST is arguably the more pivotal event. With inflation remaining the market's primary macro concern, this data could heavily influence risk appetite across all assets—including Bitcoin. A softer print may reignite bullish momentum, while a hotter-than-expected read could dampen spirits fast.
Stormrake Spotlight: Bittensor (TAO) ($453)
Stormrake Spotlight: Bittensor (TAO) ($453)
TAO experienced a volatile session, swinging within an 11% range from high to low, yet managing to close down just 0.5%. Price action suggests a consolidation phase is underway, firmly establishing support above the $440 level—previously a key target.
As long as Bitcoin retains its bullish structure, this base should hold, offering a prime accumulation zone for TAO’s next leg higher.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
Bitcoin has decisively lost the battle at the $104K resistance, with bears regaining momentum for the first time since 7 May. This follows a bearish cross between the 21EMA and 55EMA—typically a cautionary signal.
That said, the broader bullish structure remains intact. BTC bounced off the 200EMA overnight and successfully reclaimed the CPR level, both of which now serve as strong support zones. For now, $104K remains the critical resistance to watch.
BTC Total ETF Flows for 12 May: - 64.2 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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