Bitcoin's implied volatility has dropped to its lowest level in a year, coinciding with a new round of U.S.-China trade negotiations at Lancaster House in London. While Bitcoin remains above $100,000, its price has been range-bound despite a slight increase of 4.5% over the month to around $108,000. The optimism surrounding the trade talks has not spurred a breakout in Bitcoin's price, as investor sentiment remains mixed, with different groups positioning for varying market outcomes. The volatility data indicates that Bitcoin's price movement expectations, inferred from options prices, are low. Analysts highlight Bitcoin's potential as a neutral reserve asset in geopolitical conflicts, especially for nations caught between the U.S. and China. However, concerns regarding its volatility, regulatory environment, and liquidity limit its effectiveness as a true reserve asset. Despite upcoming economic data releases, including U.S. employment reports, Bitcoin's price fluctuations have been minimal as it continues to navigate a complex landscape without a decisive trend.

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