Bitcoin (BTC) Holds Above $80,000 as US and China Restart Trade Talks

While XRP trended lower, bitcoin (BTC) held firm above the crucial $80,00 handle.

Bitcoin price is trading higher on Monday, as investor sentiment improved on optimism that the US and China could restart trade talks, potentially easing geopolitical and economic uncertainty.

BTC/USD is trading at around $85,100, up around 0.1%. The cryptocurrency is trading with gains of 0.61% for the week so far.

Bitcoin Stages Recovery As Global Uncertainty Bodes Well For BTC Demand

Bitcoin has trended lower in recent weeks, but recovered slightly on Monday. The world’s largest cryptocurrency is now holding above the crucial $85,000 support.

The token had slid to lows of $80,000 last week, but recovered on Monday. A report by the Financial Times stated that the US and China are planning to hold a high-level economic dialogue in the coming months. This could open the door for fresh trade talks and reduce trade war fears.

The threat of an extended global trade war continues to boost demand for safe-haven assets like gold and potentially BTC.

Global instability has put BTC in the spotlight. Increased BTC demand amid global economic uncertainty may increase political support for the passing of the Bitcoin Act.

Senator Cynthia Lummis (R-WY) has reintroduced the Bitcoin Act, which would mandate the US government to acquire one million BTC over five years, with a mandatory 20-year holding period.

The bill would also create a framework for regulating stablecoins and other digital assets.

"This bipartisan bill would stabilize the banking system, decrease the national debt, and ultimately strengthen the American economy," Lummis said in a statement.

The Bitcoin Act is a part of Lummis' broader effort to promote cryptocurrency policy. She is the ranking member of the Senate Banking, Housing, and Urban Development Appropriations Subcommittee, which has jurisdiction over the Federal Reserve and other financial institutions.

Her efforts come as the US Congress is increasingly focused on cryptocurrency regulation. The House Financial Services Committee has held several hearings on the issue, and the Senate Banking Committee is expected to begin its own hearings soon.

Meanwhile, the US BTC-spot ETF market ended a two-week outflow streak last week.

According to data from digital asset management firm Coinshares, BTC products saw inflows of $214m last week, reversing outflows of $1.9bn in the previous two weeks.

The outflows came amid bitcoin price declines and heightened volatility in the crypto market.

Coinshares noted that the outflows were largely driven by institutional investors, who are becoming increasingly sensitive to macroeconomic and geopolitical trends.

Further crypto adoption is evident with reports that Charles Schwab is planning to offer spot crypto trading. According to a report by the Wall Street Journal, the bank is in talks with several crypto exchanges to integrate their services.

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