Bitcoin Slips After U.S.-China Tariff Truce Despite Broader Market Rally

Bitcoin (BTC) slipped 3% to around $101,300 on Monday following news of a 90-day tariff truce between the U.S. and China. The decline comes after BTC surged nearly 40% from its April low of just under $75,000, peaking near $106,000 early Monday morning on optimism surrounding the trade agreement.

This pullback appears to echo the classic "buy the rumor, sell the news" dynamic, especially given bitcoin’s stronger gains compared to traditional markets. While the S&P 500 rose 3.1% and the Nasdaq jumped 3.9% on the day, BTC’s prior outperformance left it more vulnerable to short-term profit-taking.

Aurelie Barthere, principal research analyst at Nansen, noted that bitcoin had been largely insulated from trade war risks, which helped fuel its rally. Now, as macro conditions improve, underperforming assets like altcoins, U.S. equities, and the U.S. dollar could see renewed investor interest.

Kirill Kretov, a trading automation expert at CoinPanel, emphasized that the temporary pause in tariffs is a short-term bullish signal for risk assets, including crypto. Eased inflation pressures and improved global liquidity often benefit bitcoin. However, he cautioned that volatility could return as the 90-day truce nears its end if no broader deal is reached.

Despite the current dip, bitcoin remains in a strong uptrend and continues to react sharply to macroeconomic news, especially those tied to inflation, trade policies, and global liquidity. Traders are now watching how the crypto market adapts during the tariff pause and whether momentum can sustain amid shifting investor sentiment.