Bitcoin climbs above $97K as traders optimistic about US-China trade deal
However, market participants are sceptical about reaching an agreement before June.
Sam Reynolds, Shaurya Malwa | Edited by Parikshit Mishra Updated May 2, 2025, 5:17 AM Published May 2, 2025, 5:04 AM
What you should know:
- Bitcoin trades above $97,000 amid growing optimism over potential US-China trade talks despite skepticism over a quick deal.
- Market analysts believe that a Bitcoin price of $100,000 is quite achievable, which is facilitated by high liquidity, demand from institutional investors and speculative activity of altcoins.
- AI tokens are becoming increasingly popular, with Kava Labs reaching 100,000 users, highlighting the appeal of decentralized and transparent AI platforms.
Bitcoin (BTC) is trading above $97,000 in early Asian trading as the market responded with relief to reports that the US and China are working on a trade deal, although market participants are also skeptical that an agreement will be reached this month.
“The US is actively engaging with China through various channels, hoping to negotiate tariffs,” Chinese state media reported on social media.
Dogecoin (DOGE) led the list of major cryptocurrencies, posting a 4% gain in the last 24 hours. ADA, XRP, Ethereum (ETH), and Cardano’s BNB all rose between 1% and 3%, while the overall CoinDesk 20 Index (CD20) rose 2.2%.
Movement's MOVE widened its losses to 21% after it was revealed that its founder Rushi Manche had been suspended following a CoinDesk revelation about possible token manipulation involving the 21-year-old.
At Polymarket, market participants are skeptical about a deal being reached this month, putting the likelihood of a deal by June at just 20%. Participants appear concerned that aggressive rhetoric from the White House could prolong the time it takes to reach an agreement.
The speed and scale of the tariffs announced by the White House earlier this year caused panic in the market, causing a significant drop in BTC prices. However, with trade tensions now easing, the $100,000 Bitcoin price is back in the spotlight.
Other cryptocurrency metrics look positive, analysts say, suggesting Bitcoin could reach $100,000.
“Momentum continues to build in the crypto space, with spot asset flows increasing, altcoin activity growing, and small but important changes occurring in the market,” the trading and technology market research firm said in a recent report.
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