Trump Extends China Tariffs Pause by 90 Days, BTC Price Bounces

Ahead of the August 12 deadline, U.S. President Donald Trump has moved to extend the pause of his tariffs on goods from China. This extension of China’s tariff deadline has sparked bullish sentiments, leading to a spike in the BTC price.

Trump Extends China’s Deadline, BTC Price Jumps

According to a CNBC report, the U.S. president has signed an executive order that delays his proposed tariffs on Chinese goods for another 90 days. This comes ahead of the current deadline, which was set to expire on August 12.

The BTC price jumped following this report, reaching as high as $119,800 at press time. As CoinGape reported, the flagship crypto was eyeing a move to its current all-time high (ATH) of $123,000, following a break above $122,000 earlier in the day.

However, this uptrend halted as Bitcoin reversed and dropped to as low as $119,000 following the earlier rally. It remains unknown if the news of the China tariffs pause extension can lead to another uptrend or if this spike is simply a ‘Dead Cat Bounce.’

Notably, there is a CME gap below the $119,000 level, which analysts such as Titan of Crypto have suggested that it would need to fill before it continues its uptrend. The BTC price notably fills these gaps most of the time.

Meanwhile, other factors could determine Bitcoin’s movement in the short to mid-term. This includes the U.S. CPI and PPI inflation data dropping on August 12 and 13, respectively.

The figures are very crucial as they could further support the case for a September rate cut if they show that inflation is cooling. There is currently an 86.4% chance of the Fed cutting rates at the September FOMC meeting.

Two Scenarios For Bitcoin’s Potential Trajectory

Crypto analyst Altcoin Sherpa highlighted two potential scenarios for the BTC price’s next move. For the first scenario, he opined that price could pull back and form a higher time frame bottom. The analyst claimed that this could take weeks to form and create a more sustainable move later.

For the second scenario, he stated that the BTC price could just reverse and test some of the higher points of liquidity around $120,000 or thereabout. He added that this could likely coincide with more treasury activity and macro events.