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Bitcoin Price Steady Amid US-China Trade Tensions; Binance CEO Predicts $1 Million BTC

Bitcoin remains rangebound as US-China trade tensions weigh on market sentiment. Binance CEO CZ predicts Bitcoin could reach $1 million this cycle, while broader crypto markets dip.
Published on 2025-05-06

Bitcoin Price Stability Amid Trade Uncertainty

Bitcoin held steady on Tuesday, trading within a narrow range of $90,000 to $97,000 as market caution persisted. The cryptocurrency dipped 0.4% to $94,094, reflecting broader risk aversion tied to US-China trade tensions and slowing economic growth. Despite its recent late-April rally, Bitcoin's gains have cooled, with the market lacking clear trading cues and tracking sideways movements in US equity markets.

Impact of Trade Tensions and Economic Slowdown

The US-China trade war and potential new tariffs on pharmaceutical imports have rattled investor confidence. While Bitcoin and other cryptocurrencies are not directly affected by trade disruptions, their speculative nature makes them highly sensitive to shifts in market sentiment. This vulnerability often results in larger price swings compared to traditional risk-driven assets.

Optimism and Challenges for Bitcoin

Optimism over a potential US-China trade deal and sustained buying by Bitcoin maxi Strategy (NASDAQ:MSTR) had driven Bitcoin's late-April rally. However, recent comments from US and Chinese officials suggest serious trade discussions are yet to begin. Additionally, Bitcoin maxi Strategy's first-quarter loss on its Bitcoin holdings has tempered enthusiasm.

Binance CEO's Bold Prediction

Binance founder Changpeng "CZ" Zhao remains bullish on Bitcoin's long-term outlook. In a recent interview, Zhao predicted Bitcoin could surge to between $500,000 and $1 million this cycle, with the total crypto market cap potentially reaching $5 trillion by year-end. While Zhao did not provide a timeline for this peak, his optimism aligns with his previous bold predictions, including a $100,000 target that was realized in December 2024.

Broader Crypto Market Downturn

The broader crypto market also retreated on Tuesday, with major altcoins like Ether, Solana, and Cardano experiencing declines. Ether fell 2.1% to $1,762.52, while Solana and Cardano slid 1.1% and 1.3%, respectively. Meme tokens, including Dogecoin and $TRUMP, also saw drops of 2.2% and 5%.

Conclusion

Bitcoin's current stability belies its vulnerability to broader market sentiment, with US-China trade tensions and economic uncertainty weighing heavily. While Binance CEO CZ's prediction of a $1 million Bitcoin price offers a bullish long-term outlook, the short-term trajectory remains uncertain. The cryptocurrency market's speculative nature ensures that price swings will likely remain significant in the coming weeks.

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