Bitcoin is currently trading just below $106,000 as markets turn cautious ahead of critical US-China trade negotiations scheduled for today in London. The world’s leading cryptocurrency faces selling pressure near its seven-day high of $106,794, reflecting broader market uncertainty about the outcome of these high-stakes discussions.
Key Market Factors Influencing Bitcoin
The second round of trade talks between US Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng comes at a delicate time. Their previous meeting on May 12 resulted in a 90-day tariff reduction agreement that boosted both traditional and crypto markets. This was followed by what President Trump described as a “very positive” hour-long phone call with Chinese President Xi Jinping, which led to China resuming rare earth mineral shipments to the US .
However, tensions have recently escalated:
• The US has accused China of delaying approval for additional critical minerals exports
• China has expressed dissatisfaction with new restrictions on Chinese student visas and semiconductor export controls
• Both sides claim the other has violated terms of the Geneva agreement
Beyond the trade talks, Bitcoin investors are closely watching two additional market catalysts this week:
1. US Consumer Price Index (CPI) data release on Wednesday
2. Inflation expectations data on Friday
These economic indicators could reveal the initial impact of Trump’s tariff policies and significantly influence market sentiment .
Corporate Bitcoin Adoption Continues Despite Market Uncertainty
Despite short-term market tensions, major corporations continue to accumulate Bitcoin:
Strategy (formerly MicroStrategy): Chairman Michael Saylor hinted at a new Bitcoin purchase in a recent social media post featuring the company’s portfolio tracker with the caption “Send more Orange” .
MetaPlanet: This Japanese investment firm announced plans to raise approximately $5.4 billion through the issuance of 555 million shares to acquire additional Bitcoin. The company has set an ambitious target of acquiring 210,000 BTC by 2027, news that boosted its share price by over 15% on Monday .
The Blockchain Group: This European company has announced a €300 million capital increase program with the goal of becoming Europe’s first Bitcoin treasury company .
Technical Analysis: Bitcoin at a Crossroads
Bitcoin’s price action shows signs of uncertainty with consecutive Doji candles forming on the daily chart. The cryptocurrency is struggling to break above last week’s high of $106,794, which coincides with a short-term resistance trendline .
Key technical indicators to watch:
• The Moving Average Convergence/Divergence (MACD) indicator may soon provide a buy signal if the blue line (MACD) crosses above the red line (signal)
• The Relative Strength Index (RSI) at 54 has moved above the midpoint but shows limited momentum in a sideways trend
For investors, the key levels to monitor are:
• Downside risk: A drop below $104,288 could extend the correction to the 50-day Exponential Moving Average at $101,499
• Upside potential: A breakthrough above $106,794 could target Bitcoin’s all-time high of $111,980
Market Expectations for June 2025
Looking beyond the immediate market dynamics, analysts have varying predictions for Bitcoin’s performance in June 2025:
• Some experts project Bitcoin could reach $120,000-$125,000 by the end of this month if market conditions remain favorable
• Changelly’s forecast indicates a 12.73% increase to $118,930.66 by June 9, 2025, with a potential high of $137,001.78 for the month
• CoinDCX suggests a likely trading range between $100,000 and $120,000 for June 2025, with a potential breakout above $112,000 pushing Bitcoin toward $120,000 by mid-to-late June
While some more optimistic predictions exist, including a long-shot options trade wagering on Bitcoin reaching $300,000 by the end of June, most established analysts maintain more conservative targets, with Standard Chartered predicting Bitcoin to reach $120,000 in the second quarter and end the year at $200,000 .
