Bitcoin surged past the $108,000 mark on Monday, reflecting renewed optimism in the crypto market as high-level trade negotiations between the United States and China kicked off in London. The world’s leading cryptocurrency had hovered near $105,000 over the weekend before jumping 2% and briefly touching $108,900, according to Binance 1 2.
US-China Trade Tensions Drive Volatility
The latest rally comes as US Treasury Secretary Scott Bessent and China’s Vice Premier for Economic Policy, He Lifeng, lead their respective delegations in a new round of talks aimed at resolving ongoing trade disputes. These discussions follow months of escalating tariffs and retaliatory measures that have rattled global markets and sent Bitcoin to a yearly low of $75,000 earlier this year 1 2.
President Donald Trump aggressive tariff strategy, which included a sweeping policy in April and a 145% tariff on Chinese imports, triggered a wave of uncertainty. While a temporary truce was reached in May, allowing for a reduction in tariffs and a brief surge in Bitcoin to an all-time high of $111,000, renewed disagreements over rare earth exports quickly reignited tensions 1 2.
Crypto Markets Respond to Macro Events
Investors are closely watching the outcome of the London talks, hoping for a breakthrough that could ease trade frictions and restore confidence in risk assets. The crypto market’s reaction highlights Bitcoin’s growing role as a hedge against geopolitical and economic uncertainty, as well as its sensitivity to major macro events 1 2 3.
Institutional Interest and Crypto IPOs Add Momentum
Beyond geopolitics, the crypto sector is also seeing a boost from increased institutional activity. Last week, stablecoin issuer Circle made a strong debut on the New York Stock Exchange, with its shares surging over 168% on opening day. Meanwhile, Gemini, the exchange founded by the Winklevoss twins, filed for its own IPO, signaling growing integration between crypto and traditional finance 1.
David Siemer, CEO of Wave Digital Assets, commented, “While the IPO bump is likely short-term excitement, the long-term institutional positioning leads us to be bullish about Bitcoin’s continued performance in 2025” 1.
Technical Outlook: Can Bitcoin Hold Above $108,000?
Technical analysts note that Bitcoin has broken above key moving averages and is trading well above the psychological $100,000 level. If the current momentum holds, the next resistance target is around $112,000, while support is seen near $106,900 3 4. Upcoming US inflation data could also play a role in determining Bitcoin’s short-term direction 3.
