Bitcoin showed a sharp rise on Tuesday as investors reacted positively to the progress in trade negotiations between the United States and China. At the same time, there is still caution in the market ahead of the publication of US inflation data later this week.
The cryptocurrency rose by 1.9%, reaching $110 257. It has been trading in a narrow range in recent sessions, but hopes for a trade deal between the world's largest economies have boosted risk appetite.
Bitcoin reached a record of $112,000 last month due to optimism about legislative support and institutional adoption, but concerns about trade tensions led to a pullback.
The talks between senior U.S. officials and Chinese Vice Premier He Lifeng in London concern tariff reductions and export controls and are continuing for the second day. A positive outcome can improve geopolitical stability and increase interest in alternative assets.
