The market’s leading cryptocurrency, Bitcoin (BTC), experienced a notable spike on Monday, surging past the $109,000 mark after a period of consolidation between $100,000 and $106,000 for the past week.
This surge comes as key officials from the United States and China prepare for critical trade negotiations in London, aimed at addressing ongoing tensions and salvaging “a fragile trade agreement.”
US-China Trade Talks Spark Investor Optimism
The cryptocurrency gained 2% on Monday, briefly touching a peak of $108,900 before settling back slightly. This uptick reflects growing investor optimism regarding the potential resolution of trade disputes between the US and China, one of its largest trading partners.
Treasury Secretary Scott Bessent and China’s Vice Premier for Economic Policy, He Lifeng, are set to lead their respective delegations in discussions that began Monday and are expected to continue into Tuesday, as reported by Fortune.
These negotiations are part of President Donald Trump’s broader strategy to compel US trading partners to meet various demands, often through the threat of imposing significant tariffs on imports.
Following the announcement of a sweeping tariff policy in April, which impacted nearly all American trading partners, Trump authorized a 90-day pause for negotiations. However, this pause did not apply to tariffs on China, which were escalated to 145%.
Trade Talks Resuming As Bitcoin Prices Rise
The heightened tensions between the two nations had previously led to a significant drop in Bitcoin’s value, reaching a yearly low of $75,000 as fears of a trade war drove investors away from American markets.
However, optimism returned following a summit in Geneva last month, where Trump announced a temporary agreement that would lower tariffs and facilitate further discussions. In the wake of this news, Bitcoin surged to an all-time high of $111,800 on May 22.
Yet, the truce was short-lived. Trump claimed that China had violated the agreement over a dispute regarding exports of rare earth magnets. On May 30, he expressed his frustrations on Truth Social, stating, “China, perhaps not surprisingly to some, HAS TOTALLY VIOLATED ITS AGREEMENT WITH US. So much for being Mr. NICE GUY!”
In an urgent attempt to salvage the deteriorating trade deal, Trump and Chinese President Xi Jinping held a phone call last week, their first in months. Following this 90-minute conversation, it was announced that senior officials from both countries would meet in London this week to resume negotiations.
In addition to trade-related factors, Bitcoin’s recent price surge may also be influenced by increased activity in the cryptocurrency initial public offering (IPO) market.
Wave Of Crypto IPO Activity
Last week, the stablecoin giant Circle made its public debut on the New York Stock Exchange (NYSE), with its shares soaring by over 168%, jumping from an initial price of $31 to $69 on the first day of trading.
Additionally, Gemini, the cryptocurrency exchange founded by the Winklevoss twins, filed for an initial public offering, further demonstrating the crypto industry’s growing connection to traditional finance.
“While the IPO excitement may be short-lived, the long-term positioning of institutional investors suggests a bullish outlook for Bitcoin’s performance through 2025,” remarked David Siemer, CEO of Wave Digital Assets, in an interview with Fortune.
Featured image from DALL-E, chart from TradingView.com
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