Bitcoin continued its upward trajectory for the second consecutive day. The surge in value is linked to growing optimism surrounding the potential de-escalation of trade tensions between the United States and China. As discussions between the two economic giants begin, riskier assets, including Bitcoin, have gained appeal.
Bitcoin peaked at $97,714, marking a 3.2% increase before slightly paring its gains. Ether (ETH) also followed suit, climbing by 4.2%. This upward movement comes as US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer prepare to meet with Chinese officials in Switzerland. These meetings have sparked hope for an agreement that could ease the ongoing trade dispute between the world's two largest economies.
Increased Market Activity
The renewed optimism is shown in the market, with digital-asset prime brokerage FalconX Ltd. noting a surge in demand for Bitcoin exposure. Traders are particularly focused on options contracts, especially call options with a strike price of $100,000. This shift indicates a bullish outlook for Bitcoin in the near term. Despite rising geopolitical tensions, particularly between India and Pakistan, Bitcoin traders have largely stayed focused on the positive developments in the US-China trade negotiations.
Global Risk-On Sentiment Boosts Crypto
The risk-on sentiment, which has lifted global equities and pushed gold prices lower, is also benefiting the cryptocurrency markets. Yuan Rong Tan from QCP Capital pointed out that the reopening of trade dialogues between the US and China is contributing to a broader market rally. As investors regain confidence, Bitcoin and other cryptocurrencies are experiencing notable upward movement.
Looking Ahead
As Bitcoin continues to rise, attention remains on the US-China trade talks and the broader global economic landscape. Traders are also awaiting the Federal Reserve’s rate decision, expected to maintain current levels. If the ongoing negotiations between the US and China result in positive outcomes, Bitcoin could see further gains. However, the cryptocurrency market remains sensitive to shifts in geopolitical and economic conditions, making it crucial to stay vigilant as new developments unfold.
