Reduced trade – related uncertainty: The extension of the US – EU tariff negotiation deadline from June 1 to July 9 alleviates trade – related tensions and uncertainties. Investors’ risk appetite increases in a more stable trade environment, and they are more willing to invest in risk – prone assets such as Bitcoin. For example, after the news of the extension of the US – EU tariff negotiation deadline was released, Bitcoin maintained a strong upward trend and rose above the $109,000 mark on the morning of May 26th.
Improved market confidence: The delay of the tariff deadline sends a positive signal to the market, indicating that the trade situation may improve. This positive signal boosts investors’ confidence in the overall economic situation, which in turn drives up the price of Bitcoin. As the so – called “digital gold”, Bitcoin is favored by investors in a stable economic environment.
In addition, the recent climb in the Bitcoin price is also affected by other factors. For example, the acceleration of stable – coin regulatory legislation in the United States, the increase in institutional investment in Bitcoin, and the downgrade of the US sovereign debt rating by Moody’s, which makes investors seek alternative investment assets, have all contributed to the rise in the Bitcoin price.
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