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Bitcoin Holds Near $81K Ahead of U.S.-China Summit
On Wednesday, Bitcoin remained mostly unchanged, holding near the $81,000 level as investors awaited new signals from the upcoming U.S.-China summit. Caution surrounding Iran and interest rates also continued to limit market activity.
The world’s largest cryptocurrency stabilized at $81,096.3 as of 06:18 GMT.
Earlier, Bitcoin had dropped to $80,416.9 after U.S. April Consumer Price Index (CPI) data came in above expectations. However, the cryptocurrency later recovered part of its losses and returned to levels it has maintained for more than a week after U.S. President Donald Trump expressed some optimism regarding his visit to China.
Markets Await Outcomes of the U.S.-China Summit
Trump stated that he is traveling to China accompanied by several major business leaders, including NVIDIA CEO Jensen Huang, Tesla CEO Elon Musk, and Apple CEO Tim Cook.
The U.S. president began a three-day state visit to China and said he intends to ask Chinese President Xi Jinping to open the country further to Western businesses.
Trump is also expected to discuss trade tariffs, Taiwan, and artificial intelligence with Xi Jinping.
His comments regarding the upcoming meeting generated some optimism about improving strained U.S.-China relations. Some observers also noted that the meeting between Trump and Xi could help ease tensions surrounding Iran.
Caution Over Iran and Interest Rates Persists After Hot CPI Data
Markets remain tense over the conflict with Iran, especially after Trump rejected Tehran’s response to a U.S. peace proposal earlier this week.
Reports also emerged suggesting that Trump is considering resuming military operations against Iran while maintaining the country’s naval blockade.
Iran has largely maintained a hardline stance amid growing pressure from the United States, and prospects for a ceasefire between the two nations appear increasingly fragile.
This continues to support a broader risk-off mood across global markets.
Investors are also concerned about the inflationary effects of the conflict with Iran. U.S. CPI data released earlier showed a significant rise in inflationary pressure.
The data intensified concerns that the Federal Reserve System may keep interest rates unchanged throughout the year or even raise them further amid elevated inflationary pressure.
Higher interest rates are generally negative for cryptocurrencies because they increase the opportunity cost of investing in the sector.
Crypto Market Today: Altcoins Trade Sideways Amid Cautious Sentiment
The broader cryptocurrency market moved largely in line with Bitcoin. Ethereum, the world’s second-largest cryptocurrency by market capitalization, rose 0.3% to $2,301.74.
XRP fell 0.3% to $1.4592, while Solana, Cardano, and BNB declined between 0.2% and 1.2%.
Among meme coins, Dogecoin gained 2%, while Official Trump rose 4.3%.
See also: "Bitcoin Falls Below $80,000 After U.S. Inflation Reaches 3.8% and Rate Cut Hopes Fade"
