U.S. and China set for top-tier trade negotiations amidst Bitcoin's surge to $97K.
Headline: Bitcoin Takes a Leap, Topping $97K on May 7 Despite Fed's Interest Rate Hold; Trade Talks may Have Indirect Impact
Looks like Bitcoin, the king of cryptos, reached an intraday and five-day peak of $97,650 on May 7. This push brought the asset back to the level it achieved on May 2, only to hit a wall and drop below $94,000. Over the span of about 12 hours, Bitcoin added nearly $4K to its value, but it couldn't sustain the rally, settling at $96,500 at press time. Despite the Federal Reserve's interest rate decision on May 7, Bitcoin still managed a 2.3% rise on the day with improving sentiment.
So, what’s causing all this crypto chaos? Well, it seems like the upcoming US-China trade talks could be a significant player. Apparently, high-level negotiations are on the horizon, potentially happening over the weekend in Switzerland. Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng are reportedly set to lock horns. This news was reported by the Associated Press on May 7.
He Lifeng expressed his thoughts in a tweet, stating, "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." He added that the current tariffs and trade barriers are "unsustainable," but they aim for fair trade, not decoupling. The Chinese Commerce Ministry confirmed the trade talks between its vice premier and Bessent in Switzerland.
Wendy Cutler, a former US trade official, views 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. The gathering comes amid growing concern over the impact of trade tariffs on consumer goods in the US. Rising tariffs inevitably drive the prices of goods skyward, which may lead to economic woes and recession fears.
Elsewhere in the crypto world, Bitcoin and other digital currencies are being buoyed by a weakening US dollar as the currency has devalued over the past week or so. However, the crypto market cap remains flat on the day at $3.08 trillion, despite Bitcoin's gains. Ethereum rose to an intraday high of $1,845 but found heavy resistance at this level. The altcoins were seeing minor gains, with Cardano, Chainlink, Bitcoin Cash, and Litecoin showing slight improvement, with Litecoin surging 10%.
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References:[1] AP News[2] Bloomberg[3] CoinDesk[4] Forbes[5] MarketWatch
- Despite reaching a peak of $97,650 on May 7, Bitcoin, the leading crypto, dropped below $94,000 after adding almost $4K in value.
- Bitcoin's price rise on May 7 was not directly affected by the Federal Reserve's interest rate decision.
- The upcoming US-China trade talks could potentially have a significant impact on the crypto market, as high-level negotiations are scheduled to take place over the weekend in Switzerland.
- Treasury Secretary Scott Bessent, Trade Representative Jamieson Greer, and Chinese Vice Premier He Lifeng are reportedly set to discuss their shared interests in the trade talks.
- He Lifeng stated in a tweet that current tariffs and trade barriers are unsustainable, and they aim for fair trade, not decoupling.
- Wendy Cutler, a former US trade official, views the trade talks as an important opportunity to discuss unwinding tariffs and mapping out a path forward.
- While Bitcoin is gaining, altcoins such as Ethereum, Cardano, Chainlink, Bitcoin Cash, and Litecoin are also seeing minor gains, with Litecoin surging 10%.
