Bitcoin Surges 3.6% to $97,014 on U.S.-China Trade Talk Optimism

Bitcoin's price surged to $96,437.16 on May 7, 2025, marking a 1.42% increase within a single day and a 22.56% gain over the past month. This upward trend was largely driven by the optimistic outlook surrounding the upcoming U.S.-China trade talks scheduled for May 10-11. The anticipation of easing trade tensions between the two economic superpowers has historically been a catalyst for market volatility and uncertainty, and the positive sentiment surrounding these talks has fueled a broader rally in the cryptocurrency market.

Bitcoin's price climbed to $97,078 early Wednesday, part of a broader trend where traders welcomed signs of easing tensions, which often leads to a reduction in macroeconomic uncertainty. The positive sentiment was evident as Bitcoin's price continued to rise, reaching $97,000 during the ongoing session. This recovery was significant as it reclaimed the $97,000 mark, indicating a strong market response to the potential resolution of trade disputes.

The U.S. Treasury Secretary revealed that negotiations with China were set to begin, which could provide a much-needed breather for crypto markets. Top officials from both countries were scheduled to meet in Switzerland for trade talks, raising hopes of easing tensions and reducing long-term trade uncertainty. This development was seen as a positive sign for the digital currency market, as it often pushes investors to choose crypto as a macro hedge against volatility.

Bitcoin's price rose by 3.6% to $97,014 following the announcement of the trade talks, reflecting the positive outlook in the broader risk-driven markets. The cryptocurrency's price hovered around $97,000 on Wednesday after rebounding 2.7%, indicating a strong market response to the potential resolution of trade disputes. The positive outlook surrounding the U.S.-China trade talks continued to boost Bitcoin's price, with the cryptocurrency hitting $96,500 as negotiations resumed. Market optimism grew with ongoing negotiations, leading to a positive movement in the broader cryptocurrency market.

Technically, Bitcoin’s price movement has been bullish. The cryptocurrency has the potential to continue its price upsurge if it breaks out of the descending channel on the one-hour chart. It also shows support at the $95,779.75 level, strong support, with resistance a little below $98,400, a level Bitcoin briefly breached earlier this week. This technical outlook broadly fits the broader market sentiment. Geopolitical tensions often mean more confidence in investors, and they pour capital into Bitcoin. Should the U.S.-China negotiations at the negotiating table move things in a positive direction, Bitcoin could continue this rally, even potentially pushing past the psychological $100,000 mark in the near future.

Bitcoin’s performance also relies on external factors, including macroeconomic conditions. Recent trade talk developments are following the same trends, adding fuel to the fire for Bitcoin’s role as a speculative asset during times of geopolitical flux. Bitcoin’s monthly performance is equally impressive, with a 22.56% gain, showing Bitcoin’s bullish strength is still here to stay. However, with the earlier volatility, the cryptocurrency seems to be able to hold above $96,000, which shows that buyers are still in control.