Crypto markets hold firm as investor sentiment improves on news of a U.S.-China tariff pause.

Major cryptocurrencies are holding firm on Monday morning as investor sentiment improves on news of a U.S.-China tariff pause.

A follow-up to the U.S. administration's statement that it will delay the planned March 1 tariff hikes on $200 billion worth of Chinese goods has seen investor sentiment improve.

Tariffs have been a key point of contention in the U.S.-China trade talks, and a resolution could bode well for global markets.

The world's largest cryptocurrency, Bitcoin (BTC/USD), rose 0.7% to $50,054.9 by 08:34 ET (12:34 GMT). A new high of $51,650 hit on Monday morning was quickly rejected, with BTC/USD now testing the upper range of a linear reg channel, as noted by analyst Mohanna McKenna.

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Coin Bureau founder and investor Nic Puckrin said in an analysis that Bitcoin’s persistent rally was also reflecting a broader shift in risk appetite.

“We’re seeing a decrease in geopolitical friction with the U.S. and China reportedly planning to delay raising tariffs on each other’s goods,” Puckrin said.

“This, in turn, has seen traders rotate out of safe-haven assets, with gold dropping over 3% from Friday’s close.”

“Bitcoin has now shifted back to a risk-on asset, and it’s once again trading in step with equities. If anything, the world’s largest cryptocurrency could soon break its all-time high.”

But Puckrin also warned that the altcoin rally lacked staying power without any significant retail engagement.

Despite ETF-driven hype, the absence of mainstream inflows could limit upside for most non-BTC assets.

“Despite the recent price action, it seems that altcoins are still struggling to gain any sort of traction with retail traders,” the investor said.

“This lack of interest from the world’s largest investor base could pose problems for altcoins in the long run, especially if we see any pullback in risk appetite.”

Bitcoin price edges higher as investor sentiment improves on news of a U.S.-China tariff pause.

McKenna, meanwhile, added that the one-day mean reversion signals will activate when Bitcoin is trading above $110,000, suggesting a period of consolidation may follow.

Still, he’s confident that with plenty of liquidity tailwind, new all-time highs are a matter of “when,” not “if.”

Solana (SOL/USD) had largely cleared its sell wall, with no apparent resistance until the $270 level, according to cryptocurrency analytics platform CW.

The analysis comes after Solana saw a strong rally on Friday, recovering nearly all of the losses it saw during the recent sell-off.

Elsewhere, trader Tardigrade said he was expecting a parabolic Dogecoin (DOGE/USD) move, given the signs of accelerated accumulation.

The analysis comes after Dogecoin saw some sell-off pressure on Friday, after a largely stellar performance in recent weeks.

Former ARK Invest executive Chris Burniske said on Monday that he remained long Ethereum (ETH/USD), and expects both ETH and BTC to outperform in this cycle.

"I’m still relatively optimistic on cryptocurrencies in the intermediate term," Burniske said.

"I remain a believer in Ethereum, and I think that both Bitcoin and Ethereum will outperform the broader markets this cycle."

Pillow political donor Ted Pillow also noted that Ethereum was still holding its breakout point, and could see further gains if the momentum continues.