XRP News Today: XRP Hits $2.65—Can It Challenge 2018’s Record High? BTC Visits $105k

See our full XRP forecast here.

Bitcoin Reacts to US-China Trade Deal

While XRP soared on legal optimism, bitcoin (BTC) broke through the $105,000 mark for the first time since January 31, 2025. On May 12, the US cut tariffs on Chinese goods from 145% to 30% for 90 days. Meanwhile, China lowered levies on US goods from 120% to 10% for the same period.

The trade deal eased recession fears, sending the Nasdaq Composite Index up 4.35%. According to Polymarket, the odds of a US recession in 2025 dropped from 66% on May 2 to 41%.

Santiment remarked on BTC’s price trends, stating:

“Crypto trading volume has been rising substantially Monday, with retail traders positively responding to the news of the U.S. and China reaching an agreement to drop tariffs for 90 days as their negotiations continue for a long-term solution. Prices have been lagging a bit compared to the massive +3.1% S&P 500 reaction to the news.”

Santiment painted an optimistic price outlook, adding:

“But don’t be surprised if cryptocurrency plays a bit of catch-up with rising volumes and institutional investors planning their next moves.”

BTC Price Outlook: Trade, Inflation, and ETF Flows in Focus

Despite the upbeat sentiment, profit taking left BTC in negative territory. BTC fell 1.04% on May 12, adding to Sunday’s 0.78% loss, settling at $102,729. Still, BTC held above $100,000 for the fourth consecutive session.

Short-term price direction will depend on US-China trade updates, US inflation data, ETF flow trends, and legislative developments.

Potential scenarios:

• Bearish Scenario: Negative trade headlines, hotter US inflation, US lawmaker resistance to the Bitcoin Act, and ETF outflows. Bearish sentiment could send BTC toward $90,000.
• Bullish Scenario: Upbeat trade developments, weaker US inflation, pro-crypto legislation, and ETF inflows. Bullish sentiment could drive BTC above the record high of $109,312.

Of note, Senator Cynthia Lummis recently reintroduced the Bitcoin Act, proposing the US acquire one million BTC over five years with a 20-year hold, a move that could significantly tighten supply.