Trump's Tariff Delay Boosts BTC Price: Bull Trap Ahead?
Tariff Extension Triggers Bitcoin Price Surge
U.S. President Donald Trump's decision to extend the pause on tariffs on goods from China, initially due August 12th, has injected bullish sentiment into the cryptocurrency market. This move led to a noticeable spike in the BTC price.
BTC Reacts to Tariff News, Faces Resistance
According to a CNBC report, President Trump signed an executive order delaying proposed tariffs on Chinese goods by 90 days. This preempts the original August 12th deadline.
Following the announcement, the BTC price surged, briefly touching $119,800. The rally has since stalled, with Bitcoin retracing to around $119,000. The sustainability of this uptrend remains uncertain.
Analysts are closely watching for a potential 'dead cat bounce.' There's also a CME gap below the $119,000 level that some analysts, like Titan of Crypto, believe will need to be filled.
Upcoming Economic Data to Watch
Several key economic indicators could influence Bitcoin's price in the short to mid-term. These include the U.S. CPI and PPI inflation data releases on August 12th and 13th. Favorable inflation data could strengthen the case for a September rate cut by the Federal Reserve. Current projections indicate an 86.4% probability of a rate cut at the September FOMC meeting.
Potential Bitcoin Trajectories: Analyst Perspectives
Crypto analyst Altcoin Sherpa has outlined two possible scenarios for Bitcoin's near-term movement:
- Scenario 1: A pullback to form a higher time frame bottom, which could take weeks to materialize, potentially creating a more sustainable upward trend.
- Scenario 2: A reversal and test of liquidity points around $120,000, potentially coinciding with increased treasury activity and other macro events.