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Bitcoin Weekly Outlook: BTC Holds Steady Near $103,000 Amid Rising Optimism and Institutional Interest

Bitcoin's price stabilized around $103,000 by Friday after repeated attempts to surpass the critical $105,000 resistance level during the week. Market sentiment leaned risk-on, supported by favorable global trade developments, increased corporate accumulation, and inflows from spot ETFs. However, traders remain cautious as the now-defunct FTX exchange announced a second round of creditor repayments, which could introduce volatility to the cryptocurrency market.

Global Trade Agreements and Lower Inflation Bolster Risk Appetite

This week saw global markets uplifted by significant trade breakthroughs and easing inflation in the United States. On Monday, the US and China finalized a temporary 90-day agreement to lower tariffs. This deal reduced US tariffs on Chinese goods from 145% to 30% and Chinese tariffs on US imports from 125% to 10%. The negotiations, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, signaled progress in US-China trade relations.

In addition, a separate trade agreement between the US and the UK further reduced uncertainties surrounding global trade. Investors welcomed these developments, which strengthened confidence in riskier assets like Bitcoin.

Adding to the optimism, the US signed a historic $600 billion trade deal with Saudi Arabia on Tuesday. Coupled with softer-than-expected US Consumer Price Index (CPI) data, these factors have bolstered expectations of potential interest rate cuts by the Federal Reserve. Analysts at QCP Capital noted that the reduction in tariffs and improved trade diplomacy have fueled positive sentiment across markets.

Despite these positive macroeconomic trends, the Federal Reserve remains cautious. While markets anticipate the first rate cut by July, QCP analysts suggest that September may be more likely, as the central bank seeks additional economic clarity. The latest projections show fewer rate cuts for 2025 than previously anticipated, signaling a more measured approach by the Fed.

Bitcoin Holds Range Amid Improved Market Conditions

Despite the improving global economic backdrop, Bitcoin's price action has remained constrained this week, trading within a range of $100,700 to $105,000. While bullish sentiment persists, traders are advised to monitor potential market disruptions, particularly the impending repayments from FTX, which could impact liquidity and market dynamics in the coming weeks.

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