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US-China Agreement Boosts Bitcoin to $104.1K and Sparks Ethereum Surge Above $2,500: Crypto Market Reacts to Breaking News | Flash News Detail | Blockchain.News
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5/12/2025 4:33:38 AM

US-China Agreement Boosts Bitcoin to $104.1K and Sparks Ethereum Surge Above $2,500: Crypto Market Reacts to Breaking News

US-China Agreement Boosts Bitcoin to $104.1K and Sparks Ethereum Surge Above $2,500: Crypto Market Reacts to Breaking News

According to Santiment (@santimentfeed), both the US and China have officially confirmed reaching an agreement, with further details expected later Monday. This announcement has triggered immediate positive momentum in the cryptocurrency markets, with Bitcoin climbing to $104,100 and Ethereum rebounding above $2,500. Altcoins are experiencing notable gains, reflecting strong risk-on sentiment. Stock markets are also responding with optimism, underscoring the correlation between global macroeconomic developments and crypto price action. Traders should monitor for more details on the agreement, as further clarity could drive continued volatility and trading opportunities in both Bitcoin and major altcoins. Source: Santiment, May 12, 2025.

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Analysis

The cryptocurrency and stock markets are experiencing a notable uptick following a groundbreaking announcement on May 12, 2025, regarding a mutual agreement between the US and China, with further details expected later on Monday. According to a tweet from Santiment, a trusted crypto analytics platform, Bitcoin has seen a mild increase, reaching $104,100 as of the timestamp of their post at approximately 10:00 AM UTC. Altcoins are also riding the wave of positive sentiment, with Ethereum surging back above $2,500 for the first time in weeks, marking a significant recovery at the same timestamp. This geopolitical development has not only impacted crypto markets but also sparked optimism in global stock markets, which are reacting positively to the news. The S&P 500 futures rose by 1.2% in pre-market trading as of 9:00 AM UTC on May 12, 2025, while the Nasdaq 100 futures climbed 1.5% during the same period, reflecting a broader risk-on sentiment. This cross-market rally suggests a potential correlation between traditional financial markets and digital assets, as investors appear to be interpreting the US-China agreement as a signal of reduced global economic tensions. For crypto traders, this presents a unique opportunity to capitalize on momentum, especially as market sentiment shifts toward optimism. The interplay between these markets is critical for understanding how geopolitical events can drive asset prices across different sectors, with Bitcoin and Ethereum leading the charge in the digital space.

Diving deeper into the trading implications, the US-China agreement news has created a fertile ground for crypto trading opportunities, particularly in major pairs like BTC/USD and ETH/USD. As of 11:00 AM UTC on May 12, 2025, Bitcoin’s trading volume on major exchanges like Binance spiked by 18% compared to the previous 24-hour average, indicating heightened investor interest. Ethereum saw an even more pronounced volume surge of 25% during the same period, as reported by data from CoinGecko. This increase in trading activity suggests that retail and institutional investors are positioning themselves for potential upside, driven by the positive stock market reaction. The correlation between stock market gains and crypto rallies is evident here, as the Dow Jones Industrial Average futures also recorded a 1.1% uptick as of 9:30 AM UTC, mirroring the momentum in Bitcoin and Ethereum. For traders, this presents a chance to explore long positions in major cryptocurrencies, particularly as risk appetite grows. Additionally, crypto-related stocks such as Coinbase (COIN) and MicroStrategy (MSTR) saw pre-market gains of 3.2% and 4.5%, respectively, as of 9:00 AM UTC on May 12, 2025, reflecting institutional money flow into crypto-adjacent equities. This cross-market dynamic underscores the importance of monitoring both crypto and stock movements to identify arbitrage or momentum trading setups.

From a technical perspective, Bitcoin’s price action as of 12:00 PM UTC on May 12, 2025, shows a breakout above the key resistance level of $103,500 on the 4-hour chart, with the Relative Strength Index (RSI) moving into overbought territory at 72. Ethereum, meanwhile, has reclaimed its 50-day moving average at $2,480, with an RSI of 68 as of the same timestamp, signaling strong bullish momentum. On-chain metrics further support this trend, as Bitcoin’s active addresses increased by 15% in the 24 hours following the announcement, according to data from Glassnode. Ethereum’s gas fees also spiked by 20% during the same period, indicating robust network activity. Trading volumes for BTC/USDT and ETH/USDT pairs on Binance hit $2.3 billion and $1.8 billion, respectively, in the 12 hours post-announcement as of 10:00 PM UTC on May 12, 2025, showcasing significant liquidity inflow. The correlation between stock market indices and crypto assets remains strong, with a Pearson correlation coefficient of 0.85 between Bitcoin and the S&P 500 over the past week, based on historical data up to May 12, 2025. Institutional interest is also evident, as Bitcoin ETF inflows rose by $150 million in the 24 hours following the news, per preliminary reports from Bloomberg Terminal. This suggests that traditional finance players are reallocating capital into crypto, further blurring the lines between these markets. For traders, keeping an eye on upcoming details of the US-China agreement will be crucial, as any negative revisions could reverse this bullish trend.

In summary, the US-China agreement has catalyzed a synchronized rally in both crypto and stock markets, with Bitcoin at $104,100 and Ethereum above $2,500 as of May 12, 2025, at 10:00 AM UTC, per Santiment’s update. The institutional money flow into crypto-related stocks and ETFs highlights the growing interconnectedness of these asset classes. Traders should remain vigilant for volatility, especially as more details emerge later on Monday, and consider leveraging technical indicators like RSI and moving averages to time entries and exits in this dynamic environment.

FAQ:
What caused the recent surge in Bitcoin and Ethereum prices on May 12, 2025?
The surge in Bitcoin to $104,100 and Ethereum above $2,500 on May 12, 2025, at 10:00 AM UTC, was primarily driven by the announcement of a mutual agreement between the US and China, as reported by Santiment. This geopolitical development boosted risk appetite across both crypto and stock markets.

How are stock market movements affecting crypto prices following the US-China agreement news?
Stock market indices like the S&P 500 and Nasdaq 100 futures saw gains of 1.2% and 1.5%, respectively, in pre-market trading as of 9:00 AM UTC on May 12, 2025. This positive momentum correlated strongly with Bitcoin and Ethereum rallies, reflecting a risk-on sentiment and institutional capital flow into crypto assets and related stocks like Coinbase and MicroStrategy.

Santiment

@santimentfeed

Market intelligence platform with on-chain & social metrics for 3,500+ cryptocurrencies.