Bitcoin Tapped $97K as US and China Plan High-level Trade Talks

Bitcoin prices reached an intraday and five-day high of $97,650 during early trading in Asia on Wednesday, May 7. The move has returned the asset to the same level it reached on May 2, where it hit resistance and retreated back below $94,000.

Today’s jump added almost $4,000 to BTC prices in around 12 hours, but the move could not be sustained as the asset fell back to $96,500 at the time of writing.

Nevertheless, Bitcoin remains up 2.3% on the day, and sentiment appears to be improving despite the Federal Reserve’s interest rate decision on May 7.

US-China Trade Talks

The move appears to have been driven by the United States and China reportedly planning high-level trade talks in Switzerland over the weekend.

Late Tuesday, May 6, China and the US announced plans for trade talks between Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng in Geneva, reported 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.

He added that the current tariffs and trade barriers are “unsustainable,” but we don’t want to “decouple,” we want fair trade.

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 confirmed the trade talks between its vice premier and Bessent in Switzerland.

“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, said it is an “important opportunity to have initial talks on unwinding some tariffs, mapping out a path forward, as well as raising concerns,” cautioning that the process will take time.

The meeting comes amid growing US market concern over the impact of the trade tariffs on the prices and supply of consumer goods.

Consumers are hurt the most when import tariffs are imposed as the price of goods escalates, adding to economic woes and recession fears.

Elsewhere on Crypto Markets

Bitcoin and crypto markets have also been boosted by a weakening US dollar as the currency devaluation has accelerated over the past week or so. However, crypto market cap remains flat on the day at $3.08 trillion despite Bitcoin’s gains.

Ethereum climbed to an intraday high of $1,845, but it still faces heavy resistance at this level that it has not been able to overcome in the past fortnight.

The altcoins were seeing minor gains, with slightly better performance from Cardano, Chainlink, Bitcoin Cash, and Litecoin, which jumped 10%.