Bitcoin Temporarily Rallies as US-China Tensions Ease

The weakness of the leading virtual asset (cryptocurrency), Bitcoin (BTC), has been prolonged. However, attention is focused on whether it could reach an inflection point as tariff-related tensions between the United States and China eased somewhat that day.

On the 5th (Korean time), crypto-focused outlet CoinDesk reported that trade tensions between the United States and China were easing after the Chinese government decided to suspend for one year the 24% additional tariff imposed on U.S.-made products.

The State Council's Tariff Policy Commission said in a statement, "We will stop imposing retaliatory tariffs on U.S. agricultural products such as soybeans, corn, wheat, sorghum and chicken," adding, "This measure is intended to implement the substantive agreement reached in the negotiations between U.S. President Donald Trump and President Xi Jinping last week."

Bitcoin's price also managed to partially recover. As of 3:22 p.m. that day, Bitcoin was trading at $101,780, down 3.09% from the previous day. Around 10:00 a.m. that morning, Bitcoin had given back the $100,000 level intra-day, but the easing of US-China tensions appears to have strengthened investor sentiment.

CoinDesk said, "Bitcoin's key support level is $102,900," adding, "It remains to be seen whether Bitcoin can pivot given the easing of US-China tensions."

However, it's not all positive. Semiconductor company Sequans Communications, which had declared Bitcoin reserves, was reported to have sold the Bitcoins it held to repay half of its convertible bonds.