Bitcoin price rose to above $105000 on May 12 2025 following a big trade breakthrough

The U.S. and China have agreed to reduce tariffs for a period of 90 days with the U.S. retrenching its percentages from 145% to 30 % in exchange for China reducing the duties it imposes on imports from the United States from 125 percent to ten percent. This short-lived trade cease-fire has sparked hope among world markets, which has flown capital into cryptocurrencies such as Bitcoin.

After four months, data from the market indicates Bitcoin’s strength as its price has come above the $105,000 mark for the first time since last year. The rally is consistent with the broader market rally, as investors see a lessening of trade hostilities as a good thing for risk assets. The overall crypto market cap has also increased to $3.28 trillion, a number not witnessed since February 2025, said CoinMarketCap.

Bitcoin’s bullish impetus is propelled by the trade truce

The reductions in the tariffs come from a deal made last weekend in Geneva between US Treasury Secretary Scott Bessent and Chinese Vice President He Lifeng. The deal is an attempt to ease the trade war, which has derailed the two countries’ bilateral relations for months. By cutting back on tariffs, both nations are optimistic that they will increase global trade and improve on liquidity, factors that have ever supported Bitcoin price rallies.

Bitcoin’s weekly chart shows a bull flag breakout, an indicator that often indicates that there is an upward continuation. Such technical configuration implies an estimated price target of $150,000, which may be achieved, assuming the bullish momentum remains unchanged. The latest price movement of the cryptocurrency shows increased investor confidence as capital moves into risk-on assets such as Bitcoin after the trade news.

According to Material Indicators data, there was also an increase in buying activity by large investors, or whales, with orders ranging from $100,000 to $10 million. From May 10, these entities have increased their accumulation considerably, cumulative volume delta (CVD) for whale classes has increased sharply. At the same time, little retail traders with orders below $10,000 have been liquidating, perhaps booking profits or closing out positions.

The other financial markets have also been affected by the tariff cuts. In addition to a 0.7% gain for the dollar, S&P 500 futures rose 2.8%. Meanwhile, gold prices dropped by 2.3%, a move away from safe-haven assets, with investors turning to riskier investments such as cryptocurrency, according to a report by TradingView.

Market Sentiment and Price Risks

With such bullish momentum, certain caution is called for. Bitwise’s Cryptoasset Sentiment Index has now risen to its highest level since November 2024, and that has previously been a precursor to temporary market corrections. Previously, periods of price pullbacks or consolidation followed the previous peaks in sentiment recorded in April 2022 and October 2023.

Altcoins have also benefited from the trade truce and Ethereum is up 4.38% to $2,625 while XRP is up 3.72% to $2.45. The rally of the broader crypto market confirms the positive effect of the better US-China trade relationships on digital assets. Nevertheless, the market is still subject to the external economic changes across the world, and the change of trade policies may add some volatility.

So far, the price path of Bitcoin seems to be associated with the development of the trade environment. The 90-day tariff reduction period is a window for markets to get back on their feet and may lay the ground for more in the cryptocurrency sector.