BTC Price Climbs on De-escalation Hopes
Bitcoin rises US-China talks, with BTC soaring above $97,714 for the second day in a row on Wednesday. Investors’ newfound confidence about US-China trade ties prompted the price surge. Expectations of reducing tariff tensions have been heightened by discussions between US Treasury Secretary Scott Bessent and Chinese trade officials, which are scheduled to take place in Switzerland.
Crypto and stocks rose as a result of this news, which fueled optimistic mood in risk markets.
Crypto Market Reacts to Trade Developments
Ethereum (ETH) followed Bitcoin’s lead, climbing as much as 4.2%. FalconX, a prime crypto brokerage, noted renewed interest in BTC’s “topside,” with traders betting on a positive outcome from the upcoming talks.
Sean McNulty of FalconX said, “The market appears optimistic that the trade talks over the weekend will be positive.” Meanwhile, traders seem to be ignoring geopolitical tensions between India and Pakistan, which escalated following military action early Wednesday.
Options Market Eyes $100K BTC
The BTC options market is showing a notable uptick in call activity at the $100,000 strike price.In light of the positive trend, traders are increasingly seeking to increase their upside exposure, according to statistics from Deribit, the biggest cryptocurrency derivatives market.
This indicates that the market is quite confident that the price of bitcoin will soon approach six digits once more.
Trump’s Crypto Pivot Remains a Factor
Bitcoin had reached an all-time high of $109,241 in January, riding the wave of President Donald Trump’s crypto-friendly policies. Once a crypto skeptic, Trump has since become an outspoken supporter of digital assets. However, his aggressive tariff measures created volatility, temporarily dampening the btc price.
With renewed diplomacy on the horizon, BTC is seeing another leg up in what traders call a classic “risk-on” market setup.
The Fed Decision Looms
While the Federal Reserve is expected to hold rates steady, crypto investors are watching closely. According to QCP Capital’s Yuan Rong Tan, “We’re seeing a broad-based risk-on sentiment driven by the reopening of trade dialogue between the US and China.” Global equities are also rising, the dollar is slightly stronger, and gold is falling — all indicators of market optimism that is fueling gains in bitcoin and other digital assets.
Source: Bloomberg
