Bitcoin traders may be breathing a sigh of relief after evidence that the wounds from U.S.-China tariffs are healing.
President Donald Trump’s threat to raise tariffs on China by 100% is widely believed to have triggered the flash crash on October 10th, wiping out an unprecedented $19 billion worth of open interest and plummeting spot prices in the crypto market.
But Standard Chartered’s Jeff Kendrick still wants to see improvement in ETF flows, he said in a note he shared. decryption.
He noted that $2 billion worth of money was taken out of gold ETFs late last week.
“Half of that re-entering would confirm a more positive backdrop for Bitcoin.” Bitcoin “ETFs will be launched this week from Monday through Wednesday. Bitcoin ETF inflows have lagged behind gold ETFs, and we hope for some kind of rebound,” Kendrick wrote.
Bitcoin was recently trading just below $115,000 early Monday morning, after rising 1.2% over the past day and 3.5% compared to this time last week, according to crypto price aggregator CoinGecko.
The Bitcoin-to-gold ratio is improving now that investors are more optimistic about President Trump’s meeting with Chinese President Xi Jinping on Thursday. Kendrick said that although sentiment was improving, there remained concerns that trade talks could deteriorate.
“It is now (just) above the level it was before the threat of 100% tariffs late October 10th really affected Bitcoin prices,” he wrote. “In order to put an end to this fear, I would like to focus on the time when this ratio exceeds 30.”
Although the ratio has improved, users of Myriad-owned prediction markets. decryption Parent company Dastan still believes there is a 65% chance that gold will outperform Bitcoin in 2025. Bitcoin has fallen 4.5% over the past day, but it is still far from a reversal.
If Bitcoin manages to catch up, it will close a very large gap. As of this writing, gold is up about 54% year-to-date. And BTC has risen 23% since the beginning of January.
Bitcoin’s rally over the past week has been driven in part by gold pulling back from its recent all-time high of over $4,300 per ounce.
