Bitcoin (BTC) is trading steadily around
$105,400 this week after briefly dipping to $103,030 on Sunday. The drop was
triggered by renewed U.S.–China trade tensions. Higher tariffs imposed by
President Donald Trump were initially blocked by the U.S. International Trade
Court, then reinstated by the U.S. Appeals Court last Friday. Trump escalated
the situation by accusing China of violating a preliminary trade agreement and
vowed stricter semiconductor export restrictions. In response, China dismissed
the accusations, saying it doesn't "play such games." These
developments pressured crypto markets, with Bitcoin slipping lower. However,
news of a scheduled phone call between Trump and Chinese President Xi Jinping
helped stabilize sentiment, lifting BTC back to $106,753. Although Trump stated
he likes Xi, he also acknowledged the difficulty of reaching a deal.
Uncertainty surrounds the call—similar announcements earlier this year led to
worsened tensions—but neither side can afford a full return to high tariffs,
setting the stage for a more constructive outcome.
Institutional activity remains robust. Spot
Bitcoin ETFs—IBIT (BlackRock), FBTC (Fidelity), and GBTC (Grayscale)—recorded
$945 million in net inflows last week, down from $2.46 billion the week prior
but still well above historical norms. However, $667.2 million in outflows were
reported on Monday and Tuesday, possibly reflecting profit-taking ahead of the
anticipated Trump-Xi call. Analytics firm Glassnode flagged early signs of
cooling sentiment, suggesting some large investors are locking in gains.
Looking ahead, the broader outlook for Bitcoin
remains positive. On Tuesday, Trump’s Truth Social Media applied to launch its
own spot Bitcoin ETF, adding a new layer of interest to the crypto investment
landscape. Approval timelines remain uncertain, and markets may consolidate
until the new ETF begins attracting capital. At the same time, investor
attention is turning to the GENIUS stablecoin act. Already passed by the Senate
in May, the legislation is undergoing amendments, and insider reports suggest a
consensus could emerge soon. A finalized framework could push BTC back toward
the $108,000–110,000 resistance.
U.S. Vice President JD Vance, speaking at the
Bitcoin 2025 conference, described the GENIUS Act as just the beginning, with
forthcoming regulatory efforts expected for tokens, NFTs, and other digital
assets. Technically, Bitcoin’s setup remains bullish. It must break decisively
above the $108,000–110,000 resistance to unlock upside targets at
$117,000–127,000. Immediate support holds at $98,000–100,000.