On May 7, Bitcoin prices surged to an intraday and five-day high of $97,650 during early trading in Asia, marking a notable comeback to the levels encountered on May 2. This previous high, however, encountered resistance, causing Bitcoin to retreat below $94,000.
In a remarkable turn of events, today’s rally added nearly $4,000 to BTC prices within a mere 12 hours. Yet, as the day progressed, the cryptocurrency faced a slight decline, settling back at $96,500 at the time of this writing. Despite this minor downturn, Bitcoin remains up 2.3% for the day, indicating a notable improvement in market sentiment, particularly in the face of the Federal Reserve’s interest rate decision.
US-China Trade Talks
The resurgence in Bitcoin’s price appears to be influenced by reports of high-level trade talks scheduled to take place between the United States and China in Switzerland over the weekend.
On May 6, both nations confirmed trade negotiations involving Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng in Geneva, as reported by the Associated Press on May 7.
“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,” said Bessent on X.
Bessent further emphasized the need for fair trade, describing the current tariffs and trade barriers as “unsustainable,” while expressing a clear intent to avoid economic decoupling.
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 are unsustainable, but we don’t want to decouple.
What we want is fair trade. pic.twitter.com/MYc4XvqME8
— Treasury Secretary Scott Bessent (@SecScottBessent) May 6, 2025
The Chinese Commerce Ministry subsequently confirmed the trade negotiations, noting that the agreement to engage in dialogue was predicated on a careful evaluation of US proposals and global expectations.
“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,” said a ministry spokesperson.
Wendy Cutler, a former US trade official, regarded the upcoming meetings as a valuable opportunity for initial discussions around potentially unwinding existing tariffs and addressing mutual concerns, albeit warning that progress may take time.
This dialogue unfolds against a backdrop of rising anxieties in the US market regarding the impacts of trade tariffs on the prices and availability of consumer goods, ultimately affecting consumers the most.
Elsewhere on Crypto Markets
Bitcoin and the broader crypto markets have also experienced uplift due to a weakening US dollar, which has been exacerbated over the past week. Nevertheless, the overall crypto market cap has shown little change, remaining steady at $3.08 trillion despite Bitcoin’s gains.
In parallel, Ethereum reached an intraday high of $1,845, yet continues to face significant resistance at this level, a point it has struggled to overcome recently.
On the altcoin front, there have been modest gains, particularly for Cardano, Chainlink, Bitcoin Cash, and Litecoin, which notably surged by 10%.
The insights shared in this post aim to provide clarity on recent fluctuations in Bitcoin prices and their interconnection with ongoing geopolitical developments and market sentiments.
