Bitcoin has climbed back near $115,000 as U.S.-China trade war fears ease following reduced tariff threats, boosting investor confidence. However, Bitcoin ETF inflows continue to lag behind gold ETFs, with analysts calling for improved flows to confirm a positive outlook ahead of the Trump-Xi meeting.
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Trade tensions cooling: President Trump’s decision to pull back on 100% tariff hikes has stabilized crypto markets after the October 10 flash crash erased $19 billion in open interest.
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Bitcoin ETF performance: Inflows have underperformed gold ETFs, which saw $2 billion in outflows last week, signaling potential catch-up opportunities for crypto.
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Market data: Bitcoin gained 1.2% in the past day and 3.5% weekly, trading just below $115,000, while the Bitcoin-gold ratio improves above pre-crash levels, per CoinGecko data.
Bitcoin price surges near $115K amid easing trade war fears—explore how ETF flows compare to gold and what Trump-Xi talks mean for crypto investors. Stay informed on market recovery trends.
What is driving Bitcoin’s price recovery to near $115,000?
Bitcoin’s price is rebounding toward $115,000 primarily due to easing U.S.-China trade tensions, with President Donald Trump’s retraction of steep tariff threats alleviating market pressures that triggered a sharp October 10 crash. This recovery reflects renewed investor optimism, as evidenced by a 1.2% daily gain and 3.5% weekly increase, according to data from crypto price aggregator CoinGecko. The upcoming Trump-Xi Jinping meeting on Thursday further supports sentiment, though lingering uncertainties persist.
How do Bitcoin ETF inflows compare to gold in the current market?
Bitcoin ETF inflows have notably lagged behind gold ETFs amid recent volatility. Last week, gold ETFs experienced $2 billion in outflows, while Bitcoin funds saw minimal inflows, as noted by Geoff Kendrick, head of crypto research at Standard Chartered in a research note. Kendrick emphasized that a positive signal for Bitcoin would be if half of that gold outflow amount—around $1 billion—re-enters Bitcoin ETFs during the early part of this week. This disparity highlights gold’s stronger year-to-date performance, with gains of about 54% since January, compared to Bitcoin’s 23% rise. Despite this, the Bitcoin-gold ratio has climbed back above pre-crash levels, currently sitting just over the threshold impacted by the late October tariff announcement. Kendrick indicated that a break above 30 on this ratio would confirm the end of trade-related fears. Prediction markets, such as Myriad operated by Dastan, currently show a 65% probability that gold will outperform Bitcoin in 2025, down 4.5% from the previous day but still favoring the precious metal. Bitcoin’s recent uptick partly stems from gold retreating from its all-time high above $4,300 per troy ounce, allowing relative strength in crypto assets.
Frequently Asked Questions
What caused the October 10 Bitcoin flash crash?
The October 10 flash crash in Bitcoin was triggered by President Donald Trump’s threat to impose 100% tariffs on China, leading to heightened trade war fears that wiped out $19 billion in open interest across crypto markets and drove spot prices sharply lower. This event underscored the sensitivity of digital assets to geopolitical developments, but subsequent de-escalation has aided recovery.
Will Bitcoin outperform gold before the Trump-Xi meeting?
Bitcoin could gain ground against gold ahead of the Trump-Xi meeting if trade talks progress positively, as improving sentiment has already lifted the Bitcoin-gold ratio. However, with gold’s substantial yearly gains and persistent ETF outflow trends, experts like Geoff Kendrick from Standard Chartered suggest monitoring for stronger Bitcoin inflows to signal a shift, potentially closing the performance gap observed since January.
Key Takeaways
- Trade war de-escalation boosts Bitcoin: Easing U.S.-China tensions post-tariff threat has driven a 3.5% weekly price increase, trading near $115,000.
- ETF inflows need to catch up: Bitcoin funds trail gold’s outflows, with analysts urging $1 billion in inflows this week for confirmation of bullish momentum.
- Monitor the Bitcoin-gold ratio: A rise above 30 could end fear-driven selling; prediction markets still favor gold for 2025 outperformance at 65% odds.
Conclusion
As Bitcoin’s price edges closer to $115,000 with trade war fears subsiding, the focus remains on ETF inflows catching up to gold’s performance amid the Trump-Xi summit. This recovery highlights crypto’s resilience to geopolitical shifts, supported by data from sources like CoinGecko and insights from Standard Chartered’s Geoff Kendrick. Investors should watch for sustained positive flows and ratio improvements, positioning Bitcoin for potential gains in 2025 while diversifying amid ongoing market dynamics.
