“Cautious optimism” is creeping back into the crypto market

The U.S. is slashing tariffs on Chinese goods from 145% to 30%. Meanwhile, China is trimming its own from 125% to just 10%.

"Cautious optimism" is creeping back into the crypto market, and it’s easy to see why. Mentioned in a report by AMBCrypto, the U.S. is slashing tariffs on Chinese goods from 145% to 30%.

This compares to China’s own reduction from 125% to just 10%. Both for a limited 90-day window.

Plus, with a potential trade deal on the horizon, it’s no surprise to see optimism returning after months of trade friction.

This puts the spotlight on Bitcoin’s [BTC] path to a new all-time high, which according to BGeometrics, got a bit clearer.

However, in a world where macroeconomic risks are cooling off, Bitcoin’s use case is about to face a serious real-world stress test.

Bitcoin’s use case : Hype or hedge in a post-tariff world?

Since “Liberation Day” on the 2nd of April, when tariff talks first kicked off, Bitcoin has been outperforming stocks.

In fact, it powered through April’s stock sell-off and kept leading as markets bounced back, even after the tariffs were put in place.

Take the S&P 500, for example. In the week following Liberation Day, it plummeted 12%, while Bitcoin only saw a minor 5% dip.

This resilience came despite a $1 billion outflow from BTC ETFs on a weekly basis.

This price action clearly cemented Bitcoin’s role as a strategic hedge. Hence, further proving its use case as a go-to ‘safe haven’ in volatile markets.

But what happens now that those macro risks are cooling off? According to AMBCrypto, if Bitcoin keeps climbing, regardless, it might just prove that its use case goes far beyond the headlines.

In short, it’s time to see if BTC is built to last – or if it’s just riding the “hype.”

Investors adjust to market signals

As macro tailwinds shift, market repositioning is in full swing. S&P 500 futures are already up by +3% at press time, with top tech giants back in the green.

Meanwhile, the bond market is experiencing a sell-off, as evidenced by the 10-year U.S. Treasury yield (interest on government borrowing) rising nearly 6%, reaching 4.433% bps.

Risk-on capital is back in full force, and the timing couldn’t be more critical.

Bitcoin is eyeing a pivotal resistance zone at $106k – a major hurdle for its bullish use case.

The burning question: Will BTC take center stage as a hedge in this post-tariff calm? With rate cuts looking increasingly unlikely, this could be the trigger for its next move, weather up or down.

It’s crunch time for Bitcoin to prove its ‘safe-haven’ use case once and for all.

Hence, showing the market that it’s not just a speculative play, but a legitimate hedge.