Bitcoin Hits $97K Amid Renewed US-China High-Level Trade Talks
Bitcoin prices have returned to resistance levels as reports of trade discussions between China and the United States circulate. Bitcoin (BTC) prices rose to an intraday and five-day high of $97,650 during early Asian trading on Wednesday, May 7. The move has brought the asset back to the same level it achieved on May 2, when it encountered resistance and fell below $94,000.
Today’s surge added around $4,000 to BTC values in around 12 hours, but the advance could not be sustained, and the commodity fell back to $96,500 at the time of writing. Nonetheless, Bitcoin is up 2.3% on the day, with investor sentiment showing signs of improvement despite the Federal Reserve’s interest rate announcement scheduled for May 7.
US-China Trade Talks
The action appears to have been prompted by reports that the United States and China are holding high-level trade talks in Switzerland this weekend.
On May 7, the Associated Press reported that China and the United States had agreed to hold trade negotiations in Geneva involving Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng.
Thanks to the President, the world has been turning to the US, and China has been the missing piece. We will meet on Saturday and Sunday to discuss our shared interests,” Bessent told X
He added that the current tariffs and trade barriers are “unsustainable,” emphasizing that the goal is not to “decouple,” but to ensure fair trade.
The Chinese Ministry of Commerce confirmed that trade negotiations will take place in Switzerland between its vice-premier and Bessent.
“A representative of the Ministry stated, ‘The Chinese side carefully evaluated the information provided by the US and decided to engage in talks after fully considering global expectations, national interests, and the concerns of US businesses and consumers
Wendy Cutler, a former US trade official, stated that it is an “important opportunity to have initial talks on unwinding some tariffs, mapping out a path forward, as well as raising concerns,” but warned that the process will take time.
The discussion comes as US markets are increasingly concerned about the impact of trade tariffs on consumer goods prices and supply.
Consumers suffer the most when import tariffs are implemented, as the cost of goods rises, exacerbating economic hardships and recession fears.
Elsewhere on Crypto Markets
A falling US dollar has also supported bitcoin and cryptocurrency markets, since the currency’s depreciation has intensified over the last week or two. Despite Bitcoin’s advances, the crypto market capitalisation stays unchanged at $3.08 trillion for the day.
Ethereum rose to an intraday high of $1,845, but it still confronts a significant barrier at this level, which it has been unable to overcome in the last month. The cryptocurrencies were showing minor increases, with Cardano, Chainlink, Bitcoin Cash, and Litecoin all up 10%.
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