This Chart Shows Bitcoins (BTC) Bull Run Against Gold (XAU) Expected to Accelerate as U.S.-China Trade Tensions Ease

The bullish technical set-up is consistent with past data that shows BTC tends to catchup with gold rallies.

Gold‘s meteoric rally peaked above $3,500 on April 22, and since then, the safe haven yellow metal has pulled back over 8% to $3,211, per TradingView data. During the same time frame, BTC’s price has risen by nearly 19% to $104,000.

With the U.S. and China easing trade tensions early Monday, gold could lose ground while renewed risk-on sentiment powers BTC higher.

The two nations agreed to lower tariffs on goods manufactured in both countries, according to a joint statement released in Geneva. China has proposed to reduce tariffs on U.S goods to 10% from 125% for 90 days. Meanwhile, the U.S. has proposed cutting tariffs on Chinese goods to 30% from 145%.

“The tariff reduction could see a broader return to risk-on positioning, with crypto and equities both likely to benefit from renewed investor confidence and global capital flows,” Mena Theodorou, co-founder of crypto exchange Coinstash, told CoinDesk in an email.

“The rally comes as the macro backdrop takes a positive turn: in a landmark move, the U.S. has struck trade deals with both China and the UK, while Putin and Zelensky are set to meet on Thursday to discuss a potential ceasefire. These developments have lifted risk sentiment globally, crypto included,” Theodorou added.