Bitcoin surges above $97K amid US-China trade talk optimism and Strategy purchase
Bitcoin prices rose sharply on Wednesday, fueled by a combination of improved market sentiment and continued accumulation by Strategy, the largest corporate holder of the asset.
- The gains followed news that the U.S. and China will hold high-level trade talks in Switzerland this week, renewing hopes for improved global economic cooperation.
- Bitcoin rose 3.5% to $97,211.0 by 09:48 ET (13:48 GMT), with $100,000 now viewed as the next significant psychological milestone.
Despite the rally, Bitcoin remains range-bound, as the momentum from its late-April surge has faded.
- For the past three months, it has struggled to sustain movement beyond the $97K-$100K band.
- Traders remain cautious about upside potential amid market volatility and macroeconomic uncertainty.
Bitcoin gains driven by US-China trade dialogue
Bitcoin’s upward move closely tracked broader risk asset markets, which rallied on the news of revived U.S.-China diplomacy.
- The announcement prompted investor optimism that the two economic superpowers could ease tensions, following a period marked by escalating tariffs and trade restrictions.
- Nonetheless, uncertainty prevails, as U.S. President Donald Trump signaled no immediate interest in formal trade deals.
Even though these talks have minimal direct influence on Bitcoin, the cryptocurrency often mirrors investor sentiment tied to macroeconomic developments.
- Earlier this year, fears of a prolonged trade conflict led to steep losses in Bitcoin, demonstrating its sensitivity to geopolitical risks.
Strategy buys 1,895 BTC, but size signals caution
Strategy (NASDAQ: MSTR), led by Bitcoin advocate Michael Saylor, confirmed the purchase of 1,895 BTC worth $180 million.
- This acquisition reinforces its position as the largest corporate holder of Bitcoin.
- However, the relatively smaller size compared to previous purchases suggests a more cautious stance, possibly due to recent price volatility.
The purchase comes after Strategy disclosed plans to raise $21 billion through a stock offering to fund more Bitcoin acquisitions.
- Despite this aggressive accumulation strategy, the company reported an unrealized loss of $5.91 billion on its holdings in Q1, highlighting the risks involved.
Ethereum activates ‘Pectra’ upgrade, boosting performance
On the same day, Ethereum completed its “Pectra” upgrade, marking its most significant update since the 2022 Merge.
- Finalized at 10:05 UTC, the upgrade enhances staking efficiency, wallet functionality, and overall network performance.
- The staking cap was raised from 32 to 2,048 ETH, allowing larger holders to consolidate nodes, reducing system complexity and increasing scalability.
This update arrives amid growing competition from rival chains and ongoing community debates about Ethereum’s evolution and governance.
- Developers aim to maintain Ethereum’s market dominance in the face of these pressures through technical innovation.
Altcoins follow Bitcoin’s rise but remain range-bound
Broader altcoin markets moved modestly higher in tandem with Bitcoin but remained locked within weekly ranges.
- Ethereum (ETH) rose 3.7% to $1,833.37, benefiting from the recent Pectra upgrade.
- XRP gained 1.9% to $2.13, while Solana added 3.1% and Cardano rose 4%.
- Polygon (MATIC) edged up 1.5%, continuing its slow recovery.
In the meme coin space, Dogecoin posted a 4% gain, and $TRUMP added 3%, highlighting the ongoing speculative interest in niche tokens.
- Despite these advances, most coins are struggling to break out of their established trading bands.
This midweek surge illustrates the interplay between geopolitical events, institutional activity, and network-level upgrades, all of which shape the short-term direction of the cryptocurrency market.
