Bitcoin Surges Past $93K Amid U.S.-China Trade Hopes, But Analysts Urge Caution

Bitcoin (BTC) soared above $93,000 on Tuesday, gaining nearly 7% as investor sentiment improved following optimistic signals on U.S.-China trade tensions. U.S. Treasury Secretary Scott Bessent reportedly told investors the current tariff standoff is unsustainable and suggested de-escalation could begin “very soon,” although a comprehensive deal may take years. President Trump later added that tariffs would be “substantially” reduced from the current 145%, further fueling market optimism. He also reassured markets by stating he has no plans to replace Federal Reserve Chair Jerome Powell.

Following these remarks, BTC hit a peak near $93,400—its highest since early March. Ethereum (ETH) jumped over 8% to surpass $1,700, while Dogecoin (DOGE) and Sui (SUI) posted gains of 8.6% and 11.7%, respectively. The CoinDesk 20 Index climbed 5.2%. Traditional markets mirrored the rally, with the S&P 500 and Nasdaq rising 2.5% and 2.7%. Gold, however, reversed from its $3,500 peak, ending the day down 1%.

Analysts at QCP Capital noted increasing capital inflows into BTC and gold as investors hedge against USD risk. Spot Bitcoin ETFs recorded over $380 million in net inflows Monday, adding to Thursday’s $107 million, signaling renewed institutional interest.

Despite the rally, CryptoQuant warned of weakening on-chain fundamentals. Bitcoin demand has declined by 146,000 BTC over the past month, and investor momentum is at its lowest since October 2024. USDT market cap growth remains sluggish at $2.9 billion, below the $5 billion typically associated with strong BTC rallies. Furthermore, BTC faces resistance around the $91,000–$92,000 zone, a key on-chain level historically linked to bearish reversals, suggesting potential for short-term consolidation or pullback.