Bitcoin reached a price exceeding $97,000 on May 7, 2025, triggered by anticipated US-China trade discussions, capturing the market’s attention as traders reacted swiftly to macroeconomic signals.

The event signifies Bitcoin’s sensitivity to macroeconomic developments, highlighting its role in diversified market portfolios. Initial reactions saw a spike in trading activity and short position liquidations.

Trade Talks and Market Response

Bitcoin broke through the $97,000 mark as US-China trade talks spurred significant market activity. Observers noted increased trading volumes and aggressive short liquidations following these developments. Market sentiment remained optimistic as Peter Chung pointed out the correlation between these talks and the rally. Treasury Secretary Scott Bessent’s announcement further invoked a positive market response from investors.

Shortly after the trade talks announcement, $55 million in short positions were liquidated, indicating high leverage and market volatility. Nasdaq futures joined Bitcoin in this rally, showcasing a uniform response from both digital assets and traditional markets. Ethereum also experienced price increments above $1,800, demonstrating a broader reaction from other cryptocurrencies. The impact on traditional assets such as gold, which faced declines, further underscored the risk-on sentiment favoring cryptocurrencies.

“Gold, a risk-off asset, started to tank but risk-on assets like Nasdaq futures and BTC started rallying all around the same time this morning, which coincides with the timing of the US-China trade talks announcement.” — Peter Chung, Head of Research, Presto Research

BTC’s historic behavior shows consistency with past economic stimuli, especially policies affecting trade. Trading communities responded positively as this surge mirrored previously observed trends. Historical instances depict similar bullish momentum amid global trade discussions or monetary policies, often leading to increased investments in blockchain technologies and related assets.