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Bitcoin Surges 4% to $97,000 Amid US-China Trade Talks

Coin WorldWednesday, May 7, 2025 11:35 am ET

3min read

Bitcoin (BTC) has made a significant recovery, reclaiming the $97,000 mark during the ongoing session despite facing resistance. This surge comes as the cryptocurrency tests the upper limits of its consolidation range, buoyed by scheduled US-China trade talks. The flagship cryptocurrency is up nearly 4% over the past 24 hours, reflecting a bullish sentiment in the market.

Japanese firm Metaplanet has completed the acquisition of 555 Bitcoin, bringing its total holdings to 5,555 BTC. The company acquired these Bitcoins for $53.4 million at an average price of $96,134. Metaplanet also issued $25 million in zero-coupon ordinary bonds to fund its BTC purchases. The firm has raised 35 billion yen ($244 million) through zero-coupon bonds and stock acquisition rights since 2024 via its partner, Evo Fund. Metaplanet's proprietary key performance indicator, BTC Yield, has shown significant growth, reaching 309.8% in Q4 2024, 95.6% in Q1 2025, and 21% in the current quarter. The firm recently announced plans to launch a US subsidiary, Metaplant Treasury, based in Florida, aiming to raise $250 million to fund its Bitcoin strategy and tap the US markets. Metaplanet is Asia’s largest public corporate holder of Bitcoin.

The United Kingdom has ruled out creating a crypto reserve, with Economic Secretary to the Treasury expressing a negative outlook towards Bitcoin. However, the UK is willing to leverage blockchain technology for government finance and is exploring the use of distributed ledger technology for sovereign debt issuance. This comes amid growing digital asset cooperation between the US and the UK, with recent discussions between the US Chancellor of the Exchequer and US Treasury Secretary confirming the formation of a senior official-level working group focused on digital assets.

Bitcoin is currently hovering around the $97,000 mark, displaying resilience and maintaining its push towards $100,000. Joe Burnett, Director of Market Research at Unchained, believes BTC is just getting started at $100,000 and predicted a move to $250,000 this year and moving to a staggering $1 million by 2030. Burnett highlighted the improving macroeconomic conditions as a key driver, stating that global M2 is starting to break out and the VIX hit a recent all-time high that we haven't seen since March 2020 and before that, December 2008.

Bitcoin (BTC) is up over 3% in the past 24 hours as it tests the upper limits of its trading range. The flagship cryptocurrency currently trades at $97,300 as it eyes a move to $100,000 after starting the week on a bullish note. BTC had surged to an intraday high of $98,000 on Friday but lost momentum over the weekend, dropping to $94,390 by Sunday. However, it has made a strong start to the week amid reports the US and China will officially hold trade talks this weekend, potentially de-escalating the trade war. Trade tensions have impacted investor sentiment in recent months, and a thaw could see BTC surge to new highs. Meanwhile, in another positive development, the US state of New Hampshire signed a law allowing the US state treasurer to invest 5% of public funds into Bitcoin. Institutional demand has also risen, further buoying markets.

Markets are expected to turn their attention to the Federal Reserve’s FOMC meeting and interest rate decision. The Federal Reserve is expected to leave interest rates unchanged at 4.25% to 4.50%. The Fed has no reason to lower interest rates, especially with inflation above 2% and the labor market holding up. However, it finds itself in a challenging spot thanks to the divergence between US soft data, which has deteriorated considerably, and US hard data, which has remained resilient despite trade tensions and tariff turmoil.

BTC ended the previous weekend on a bearish note, dropping almost 1% on Sunday and settling at $93,803. The price recovered on Monday, rising 1.28% to claim $95,000 and settle at $95,002. However, the price was back in bearish territory on Tuesday, falling 0.70%, slipping below $97,000, and settling at $94,342. BTC faced volatility on Wednesday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as the price registered a marginal decline and settled at $94,155. Bullish sentiment returned on Thursday as BTC rose over 2%, surging past $96,000 and settling at $96,458. The price surged to an intraday high of $98,000 on Friday. However, it could not stay at this level and settled at $96,939, ultimately registering an increase of 0.50%.

BTC lost momentum over the weekend, dropping nearly 1% on Saturday and 1.66% on Sunday to slip below $95,000 and settle at $94,390. The price fell to an intraday low of $94,582 on Monday. However, it rebounded from this level to register an increase of 0.41% and settle at $94,773. Bullish sentiment intensified on Tuesday as BTC rose over 2% to reclaim $96,000 and settle at $96,845. The current session sees BTC marginally up as it attempts to overcome selling pressure at $97,000. A break above this level could see BTC surge to $100,000.

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