Bitcoin broke $97,000 late Tuesday after news of a renewed diplomatic push between the US and China on trade policy. The price jump, triggered by comments from US Treasury Secretary Scott Bessent and confirmation of meetings with Chinese officials in Switzerland; has boosted broader risk markets, not just cryptocurrencies but also US equity futures.
This latest Bitcoin surge past $97K is a remarkable feat this week, as macro events continue to impact crypto.
Diplomatic Talk Gives Bitcoin Room to Breathe
Treasury Secretary Scott Bessent’s statement Tuesday evening made headlines when he called the current tariff framework between the two economic giants “unsustainable,” but said Washington doesn’t want “decoupling.” His comments followed a flurry of behind the scenes diplomatic activity, culminating in an announcement he would travel to Switzerland this weekend to meet with Chinese officials.
On the Chinese side, the Ministry of Commerce said
“Senior US officials have made a series of comments hinting at tariff adjustments and have expressed, through various channels, a willingness to engage… China has carefully considered these messages and has decided to engage with the US.”
Investors quickly took it as a de-escalation of trade tensions as Bitcoin surges past $97K in under 2 hours. As of Wednesday morning, BTC is trading around $96,520. Nasdaq 100 and S&P 500 futures also rose, each up 1%.
Risk Assets Get a Boost
Bitcoin’s move came as risk assets overall got a lift. While equities had already risen during the regular session, the after hours response to the trade news was a big inflection. Traders are recalibrating expectations not just for global supply chains but for US monetary policy if trade tensions ease and import costs come down and inflationary pressure moderates.
This isn’t just about tariffs or geopolitics, it’s about market structure. If the US and China soften their tone, there’ll be ripples into crypto valuations quickly, especially given how connected risk sentiment is now.
$100K Back in Play?
As Bitcoin surges past $97K, analysts are now pulling out price targets that were put away after the post-halving stagnation in April. While ETF flows and monetary policy speculation drove previous rallies, this one has a different catalyst: geopolitics.
However, caution is needed. While optimism on trade talks has sparked risk assets, the details of any deal are still unclear. Any stall or miscommunication in the next few days could reverse gains just as fast.
Institutional Interest Returns
Spot and futures markets saw a big return of institutional activity overnight. According to Glassnode, Bitcoin open interest jumped $750m in 6 hours, with most of the flows coming from CME Group and Binance. Stablecoin inflows also spiked, indicating new capital entering the ecosystem.
We’re seeing both sides of the trade, spot buyers on the dip and leveraged traders chasing momentum. This isn’t retail-fueled noise; the smart money is positioning for more upside.
Bitcoin surge to $97K will likely attract more attention from asset managers and macro hedge funds, especially as the broader US regulatory environment is stable and ETFs have normalized daily trading volumes since approval.
Wrapping Up: Real-World Implications for U.S.–China Blockchain Relations
Beyond price movement, the diplomatic thaw could revive talks on blockchain trade infrastructure between the U.S. and Asia-Pacific economies. Both countries are exploring central bank digital currencies (CBDCs) and blockchain logistics pilots, so any easing of tensions may open up opportunities for collaboration on shared standards and interoperability.
If the macro climate improves, one could expect crypto trade rails, especially in stablecoins and cross-border infrastructure, to benefit significantly.
What happens next depends on the success of the Switzerland meetings and the durability of this new tone in U.S.–China relations. For now, the momentum is bullish and $100K doesn’t seem so far away.
FAQs
Why did Bitcoin surge to $97K?
Bitcoin surged after U.S. Treasury Secretary ‘Scott Bessent announced trade talks with China, meaning potential tariff relief and improved relations.
Is this sustainable?
Momentum is strong but sustainability depends on follow-through from ‘U.S.–China talks and macro stability.
How are institutions reacting?
Institutional flows are back in, ‘with big open interest growth on CME and Binance, so Bitcoin is looking up.
Will a U.S.–China trade deal impact other cryptos?
Yes. A risk-on environment often lifts altcoins with Bitcoin, especially stablecoins and cross-border infrastructure with geopolitical stability.
Will Bitcoin hit $100K?
Maybe, but $100K requires macro and institutional optimism.
Glossary
Bitcoin (BTC): The first digital currency, used for p2p transactions on a ‘blockchain.
Open Interest: Total outstanding derivative contracts (futures) that haven’t been settled.
Stablecoins: ‘Cryptocurrencies pegged to a stable asset like the US dollar, used for trading and transfers.
Macro asset: A financial instrument that reacts to ‘macro events.
Risk Assets: Investments that carry more market risk, like stocks and cryptocurrencies.
References and Sources
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