Bitcoin rallied early Wednesday as optimism surrounding renewed US-China trade negotiations lifted risk assets across global markets.
The world’s largest digital asset rose by as much as 3.2% to $97,500 during morning trading in Singapore before easing slightly. Ether, the second-largest cryptocurrency by market capitalization, also advanced by up to 4.2%.
The surge came after it was confirmed that US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese officials in Switzerland this week.
The upcoming discussions have been interpreted by investors as a potential turning point in easing prolonged trade tensions between the world’s two largest economies.
The announcement injected fresh risk-on sentiment across markets with Asian equities posting gains, the US dollar strengthening modestly and gold retreating as investors rotated into riskier assets. Cryptocurrency markets followed suit.
Sean McNulty, Derivatives Trading Lead for APAC at FalconX Ltd., noted a notable uptick in demand for upside exposure.
“We are seeing renewed interest for Bitcoin topside, with market participants optimistic that weekend trade talks will be positive,” McNulty said.
Options market data from Deribit, the world’s largest crypto derivatives exchange, confirmed the trend.
Activity has been heavily concentrated in Bitcoin call options with strike prices around $100,000, indicating investor positioning for further gains.
Despite mounting geopolitical tensions in South Asia—where India announced targeted military strikes against Pakistan and Islamabad claimed it had shot down five Indian jets—crypto markets showed little reaction.
According to McNulty, traders have so far “totally ignored” the conflict, remaining focused on trade developments and monetary policy.
Yuan Rong Tan, a trader at QCP Capital, said “We’re seeing a broad-based risk-on sentiment today, largely driven by the reopening of trade dialogue between the US and China. Global equities are up, gold is retreating, and the USD is modestly higher. This is a classic risk-on setup that is also lifting crypto markets.”
Bitcoin previously reached an all-time high of $109,241 in January, buoyed by optimism surrounding President Donald Trump’s crypto-friendly stance and proposed digital-asset legislation.
However, volatility induced by the administration’s tariff initiatives and global market instability had suppressed crypto prices in recent weeks.
As of 6:52 a.m. London time, Bitcoin was trading at $96,387 while Ether stood at $1,828.
Traders are now eyeing the US Federal Reserve’s policy decision scheduled for later Wednesday, with markets broadly expecting a hold on interest rates.
The outcome could further influence short-term crypto pricing and risk sentiment across financial markets.
Investors will continue to monitor developments from Switzerland as talks progress with Bitcoin positioning suggesting rising bullish momentum should diplomatic efforts yield constructive outcomes.
