Singapore, Singapore, May 28th, 2025, FinanceWire

FBS, a leading global broker, has released a new market analysis examining how the recent trade truce between the US and China may affect Bitcoin’s short- and long-term performance.

The two countries have agreed on a 90-day pause in their trade war, cutting tariffs from 125% to 10%. While some restrictions remain, this step has already boosted investor confidence and may increase global market liquidity — a development that often benefits risk-sensitive assets like Bitcoin.

FBS analysts say that Bitcoin is still trading near its all-time high. One key reason is the steady interest from large investors who continue to put money into Bitcoin ETFs. Another helpful factor is the weaker US dollar. Historically, a falling dollar boosts demand for alternative assets, including cryptocurrencies.

The report also highlights a shift in how Bitcoin is viewed. Once seen primarily as a hedge against inflation, Bitcoin is increasingly regarded as a growth asset and a key component of diversified portfolios. While short-term price fluctuations remain likely, especially if the dollar strengthens, long-term trends continue to support Bitcoin’s upward trajectory, driven by broader liquidity, investor confidence, and Bitcoin’s growing reputation as “digital gold.”

“The reduction of trade tariffs may temporarily reduce the demand for Bitcoin as a store-of-value asset”, the analysis explains, “but in the long-term, it is likely to stimulate the development of the crypto market and the growth of BTC value due to increased global liquidity and investment interest.”

FBS continues to provide its clients with market insights and expert analysis, helping traders stay informed and make better decisions.

Users can read the full article and Bitcoin forecast in the latest FBS analysis here.

Disclaimer: This material does not constitute a call to trade, trading advice, or recommendation, and is intended for informational purposes only.

About FBS

FBS is a global brand that unites several independent brokerage companies under the licenses of FSC (Belize), CySEC (Cyprus), and ASIC (Australia). With 16 years of experience and over 100 international awards, FBS is steadily developing as one of the market’s most trusted brokers. Today, FBS serves over 27,000,000 traders and more than 700,000 partners around the globe. 

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