Bitcoin Retraces Gains After US-China Trade Deal; MicroStrategy Boosts Holdings

Bitcoin slightly declined on Monday but maintained its position above the $100k mark, following a 90-day trade truce between the U.S. and China. The cryptocurrency dropped 1.7% to $102,552.7 by Monday evening, after surging over 9% last week and reaching its highest level since late January 2025.

The U.S.-China trade agreement, announced after weekend negotiations in Geneva, includes a 90-day pause on tariffs. The U.S. will reduce tariffs on Chinese goods to 30%, while China will cut its tariffs on U.S. imports to 10%. This development has sparked optimism in global markets, though analysts caution that ongoing trade and fiscal policy uncertainties may sustain volatility.

In regulatory news, SEC Chair Paul Atkins outlined plans to introduce new rules for crypto tokens, focusing on distribution, exemptions, and market oversight. Atkins emphasized the need for a clear regulatory framework to guide the crypto industry while deterring illegal activities.

MicroStrategy further expanded its Bitcoin holdings, purchasing an additional 13,390 BTC worth approximately $1.34 billion. This brings the company's total Bitcoin holdings to 568,840 BTC, valued at nearly $60 billion. The acquisition was funded through a combination of stock sales and preferred share issuances, raising MicroStrategy's average purchase price to $69,287 per BTC.

Altcoins saw mixed movements on Monday, with Ethereum slipping 1.5% to $2,480.63 and XRP rising over 7% to $2.53. Solana and Polygon each dropped 0.6%, while Cardano edged up 0.3%. Meme tokens also experienced declines, with Dogecoin falling 2% and $TRUMP plummeting 8.8%.

Overall, crypto markets reflect a mix of optimism and caution, as investors weigh the impact of macroeconomic developments and regulatory changes.