Crypto and Stocks Jump as U.S.- China Tension Eases—But Is Bitcoin’s Rally Built to Last?

Markets staged a powerful rebound on Tuesday, and crypto rode the wave. $BTC broke above $93,000 for the first time since early March, leading a broad rally across major digital assets. Stocks surged too, with the $DJI climbing over 1,000 points—its best single-day gain in months.

What changed? Hints of a possible cooling in U.S.-China trade tensions gave investors a reason to breathe. But under the surface, not everyone is convinced the rally can hold.

Bitcoin Leads the Charge

Bitcoin gained 5.39% in 24 hours, reaching $93,035. It’s now up 12.3% in April—wiping out the losses from Q1, when it had fallen 12%. Ethereum, which had lagged behind in recent weeks, surged 11.94% to $1,771. Other altcoins followed: Immutable (IMX) shot up 39%, Sui (SUI) rose 22%, and even meme-coin Bonk (BONK) climbed over 21%.

The entire crypto market cap jumped 5.75% in one day, pushing total value to $2.92 trillion.

But the move wasn’t just driven by buyers. Nearly $516 million in short positions were liquidated in the last 24 hours, as bears were caught off guard. Still, there’s danger on the other side too—if Bitcoin pulls back to $90,000, more than $677 million in long positions could be wiped out.

What’s Driving This?

At a JPMorgan-hosted event in Washington, U.S. Treasury Secretary Scott Bessent signaled a potential shift toward de-escalation in trade tensions with China. That was enough to boost risk appetite across markets—stocks, crypto, everything.

But here’s the thing: investors aren’t buying it blindly. They’ve seen this show before. Trump-era trade headlines have swung markets before, only to reverse days later.

In fact, while prices soared, sentiment shifted fast—from “Fear” to “Greed,” according to the Crypto Fear and Greed Index. That kind of emotional whiplash often sets the stage for high volatility.

Traders Split on What Comes Next

On-chain activity is heating up. Open Interest for Bitcoin rose 12.18%, hitting a monthly high. Ethereum futures activity also climbed 15%.

But here’s a twist: over 60% of Binance traders with open Bitcoin positions are short. That means despite the rally, many still expect a reversal.

Analyst Ali Martinez points to $95,600–$98,290 as Bitcoin’s next big resistance zone. Another chartist, CrediBULL Crypto, warned the rally may soon hit a wall: “We’re still right at the supply zone—don’t celebrate too soon. If Bitcoin can break through, great. But a rejection wouldn’t be surprising.”

Meanwhile, the Macro Isn’t Helping

The International Monetary Fund (IMF) just cut its U.S. growth forecast for 2025, blaming Trump’s tariff plans. Inflation expectations were revised upward too—adding pressure on both the Fed and consumer spending.

So while risk assets are rallying on short-term optimism, the macro picture is still murky.

Bottom Line:

Crypto had a big day—but it wasn’t just about buyers. Short liquidations fueled the pump, and market sentiment flipped fast. Bitcoin’s path to $98,000 looks possible, but not without bumps. Meanwhile, U.S.-China trade headlines may give markets more reasons to rally—or crash—depending on what gets said next. So enjoy the green candles, but keep your eyes open.