Bitcoin surged on Wednesday as investors welcomed the surprise news of renewed US-China trade talks, with the world’s largest cryptocurrency surging 3.2% in Singapore to a high of $97,500—its best in weeks. The rebound comes as the top US and Chinese trade officials are set to meet in Switzerland, fueling hopes of alleviating tensions in the ongoing tariff war. Risk appetite spilled over into international markets, lifted Asian equities, supported the US dollar, and propelled a wave of risk-on crypto wagers.
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Trade Hopes Drive Risk Appetite in Crypto and International Markets
The news of senior trade talks between United States Treasury Secretary Scott Bessent and Chinese officials prompted swift responses throughout the financial community. Bitcoin hit a high during Singapore trading hours before settling at $97,148. In the US, Bitcoin rose 2.2% in early trading, resting at $96,446.5. The rally comes amidst increasing investor enthusiasm for risk assets, especially across Asian markets, where optimism takes hold quickly. Analysts see the diplomatic rhetoric having set up the perfect atmosphere for a potential break higher toward the $100,000 mark.
Not only Bitcoin but other virtual assets also rose. Ether rose 4.2% to $1,829, and altcoins such as Solana, Cardano, and Avalanche registered minor gains. The overall crypto market mirrored increased optimism, with FalconX Ltd. noting new demand for Bitcoin upside trades. That action comes as market participants briefly put aside geo-political issues in places such as Pakistan and instead focused on macro-level developments that may transform the global economic map.
Altcoins Follow the Rally as Market Sentiment Improves
As Bitcoin rallied, altcoins followed suit. Although Ether took the lead with a 4.2% gain, other coins like BNB, XRP, and Polygon gained between 1% to 3%. Traders seem spurred by the possibility that successful talks may ease the US-China tariff war, which has seriously rocked markets since early 2024.
In addition, increasing Asian equity markets and a strengthening US dollar contributed to crypto purchasing, usually observed when investor sentiment in general markets is better. Even Chinese equities responded positively to the news, supported by ongoing stimulus efforts by the People’s Bank of China, although gains were subsequently trimmed as investors looked for concrete progress from the Switzerland summit.
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Can Bitcoin Break Past $100,000?
Even after trading in a range between $90,000 and $97,000 in the past few weeks, Bitcoin remains within striking distance of its all-time high of $109,241, reached in January 2025. The latest price action has fueled fresh rumors of a break above $100,000 in the near term, particularly if global risk appetite keeps on improving and regulatory outlook keeps being good.
US President Donald Trump’s about-face from crypto critic to crypto advocate has been a key driver of prices higher earlier this year. Regulatory clarity and pro-digital asset White House rhetoric gave crypto markets renewed lift. But Trump’s belligerent trade policies and mercurial stances have brought volatility, dampening bullish enthusiasm.
FalconX’s Sean McNulty, a top derivatives trader based in APAC, said investors are demonstrating “increased conviction” and are “looking beyond short-term geopolitical noise” to long-term macro drivers. Nevertheless, with the Fed rate decision imminent, some investors are still wary of predicting a long-term bull run.
What’s Next for Crypto Investors?
As Bitcoin edges closer to the psychological $100,000 threshold, investors have their eyes on three triggers: concrete developments from US-China trade talks, the rate position of the Federal Reserve, and ongoing regulatory transparency in Washington. With at least two of these favorable, it won’t take much to send Bitcoin testing new records.
Sentiment is currently optimistic but cautious. While global equities and crypto assets are enjoying the diplomatic thaw, traders are well aware that headlines don’t always lead to action. With volatility still prevalent, risk management is still paramount.
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