U.S.-China High-Level Trade Discussions Schedule Amid Bitcoin Reaching $97K Mark
Bitcoin Soars to $97,650 Amid Trade Talks News
Bitcoin's price skyrocketed to an intraday and five-day high of $97,650 on May 7 during early Asian trading hours. This price surge brought the asset back to the same level it reached on May 2 before it retreated below $94,000 due to resistance.
The impressive jump added nearly $4,000 to BTC in around 12 hours, but it couldn't sustain the rally as the price fell back to $96,500 at the time of writing. Despite the temporary setback, Bitcoin still stands tall with a 2.3% increase on the day, amid improving sentiment.
Intriguingly, this surge occurred despite the Federal Reserve's anticipated interest rate decision on May 7.
Trade Talks Dance
The dance between the United States and China appears to be behind Bitcoin's merry go-round. Reports suggest high-level trade talks are planned in Switzerland over the weekend involving Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng.
Late on Tuesday, May 6, China and the US confirmed plans for these talks, as reported by the Associated Press on May 7. Treasury Secretary Bessent remarked, "Thanks to POTUS, the world has been coming to the US, and China has been the missing piece-we will meet on Saturday and Sunday to discuss our shared interests."
The current tariffs and trade barriers were deemed "unsustainable," but Bessent stressed that they don't want "decoupling," they want fair trade.
The Chinese Commerce Ministry acknowledged the trade talks between its vice premier and Bessent in Switzerland. A ministry spokesperson said, "The Chinese side carefully evaluated the information from the US side and decided to agree to have contact with the US side after fully considering global expectations, Chinese interests, and calls from US businesses and consumers."
Wendy Cutler, a former US trade official, viewed this as an "important opportunity to have initial talks on unwinding some tariffs, mapping out a path forward, as well as raising concerns." However, she cautioned that the process will take time.
Crypto Landscape
The crypto markets have also caught the contagion of optimism thanks to a weakening US dollar over the past week. The devaluation of the greenback has boosted Bitcoin and other cryptocurrencies. However, the total crypto market cap remained flat on May 7 at $3.08 trillion, despite Bitcoin's gains.
Ethereum tickled an intraday high of $1,845, but it still faces heavy resistance at this level that it has not conquered in the past fortnight.
Other altcoins were slightly up, with Cardano, Chainlink, Bitcoin Cash, and Litecoin seeing better performance than their peers. Litecoin, in particular, leaped 10%.
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- The Bitcoin price surge to $97,650 on May 7 was not solely fueled by the Federal Reserve's interest rate decision but seemed to be influenced by the dance of trade talks between the United States and China.
- During early Asian trading hours, Bitcoin's price skyrocketed to an intraday high of $97,650, reaching a level similar to May 2 before retreating briefly below $94,000 due to resistance.
- Even amid the fervor surrounding Bitcoin, other cryptocurrencies such as Ethereum, Cardano, Chainlink, Bitcoin Cash, and Litecoin have also caught the contagion of optimism, with Litecoin leaping 10%.
- Amid global finance, business, and technology news, politics also played a significant role in the crypto market, as high-level trade talks between the United States and China were planned for the weekend in Switzerland.
- The crypto landscape has been reshaped over the past week due to a weakening US dollar, which has boosted Bitcoin and other cryptocurrencies, yet the total crypto market cap remained flat.
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