U.S.-China Talks Spark 3.2% Bitcoin Surge to $97,700

On May 7th, reports surfaced indicating that U.S. Treasury Secretary Yellen and Trade Representative Tai were scheduled to meet with Chinese officials in Switzerland. This news sparked optimism among investors, who anticipated a potential easing of U.S.-China trade tensions. The positive sentiment was reflected in the strengthening of Asian stocks and the U.S. dollar, which in turn drove Bitcoin (BTC) to rebound from its low of $93,000 on May 6th. By Wednesday morning, BTC had surged approximately 3.2% to reach $97,700, although the gains later retreated.

According to a Bitunix analyst, the progress in U.S.-China negotiations could provide a boost to market sentiment in the crypto market. However, the analyst also noted that uncertainty persists regarding the outcome of these negotiations. The analyst advised that if BTC can hold above $94,000, it is likely to rally again and break through the range's high point. The analyst also emphasized the importance of continuously monitoring changes in the U.S.-China talks and paying attention to Thursday's Fed policy discussion, suggesting that investors should adjust their positions flexibly based on these developments.

The news provided a short-term boost to risk assets, but the overall market sentiment remains volatile and could fluctuate with further developments in the U.S.-China negotiations. Investors are advised to stay vigilant and adapt their strategies accordingly.