Bitcoin Rises as the US and China Plan Trade Talks

Bitcoin prices reached an intraday and five-day high of $97,650 during the early morning hours on Wednesday, May 7. This move brought the largest cryptocurrency back to the same level it reached on May 2, where it encountered resistance and pulled back below $94,000.

Today’s jump added nearly $4,000 to the price of Bitcoin in about 12 hours. Bitcoin is up 3 percent in the last 24 hours, and sentiment appears to be improving despite today’s Federal Reserve interest rate decision.

US-China Trade Talks

This rise seems to have been fueled by the US and China, which are reportedly planning high-level trade talks in Switzerland over the weekend. Late on Tuesday, May 6, China and the US announced plans for trade negotiations between Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng in Geneva, reported the Associated Press on May 7.

– “Thanks to President Trump, the world is coming to the US, and China is the missing piece. We will meet on Saturday and Sunday to discuss our common interests,” Bessent said on X.

He added that current tariffs and trade barriers are ‘unsustainable,’ but that they want fair trade.

The Chinese Ministry of Commerce confirmed the trade negotiations between its Vice Premier and Bessent in Switzerland.

– “The Chinese side has carefully assessed the information from the US side and decided to agree to contact with the US side after fully considering global expectations, Chinese interests, and the calls from American companies and consumers,” said a ministry spokesperson.

Wendy Cutler, a former US trade official, stated that this is an important opportunity for initial discussions on the removal of some tariffs, planning a way forward, as well as expressing concerns, warning that the process will take time.

The meeting comes amid growing concerns in the US market about the impact of trade tariffs on prices and the supply of consumer goods. Consumers are the most affected when import tariffs are imposed as the price of goods escalates, increasing economic problems and fears of recession.

The Rest of the Crypto Market

Bitcoin and crypto markets have also been boosted by the weakening US dollar as the currency’s devaluation has accelerated over the past week. However, the crypto market capitalization remains unchanged at around $3.1 trillion despite Bitcoin’s rise.

Ethereum climbed to an intraday high of $1,845 but still faces significant resistance at this level, which it has failed to overcome in the past two weeks.

Altcoins recorded smaller gains, with slightly better performance from Cardano, Chainlink, Bitcoin Cash, and Litecoin, which jumped 10 percent.