Bitcoin Surges Past $97,000 Amid US-China Trade Talks and Easing Monetary Policy

On the morning of May 7, the price of the leading cryptocurrency rose above $97,000. This surge was fueled by signals of a potential easing in trade tensions between Beijing and Washington, alongside a more accommodative stance from the People’s Bank of China (PBOC).

The PBOC announced a reduction in the weekly reverse repos rate from 1.5% to 1.4%, as well as a 50 basis points cut in the reserve requirement ratio effective May 15, which is expected to inject approximately 1 trillion yuan (around $138.6 billion) into the economy.

In a separate statement, Beijing highlighted its support measures for several critical sectors, including technology and real estate.

A meeting aimed at «alleviating trade tensions» is scheduled to take place in Switzerland between U.S. Treasury Secretary Scott Beasley, U.S. Trade Representative Jamison Greer, and Chinese Vice Premier He Lifeng from May 9 to 12. This information has been confirmed by authorities in China.

“Current tariffs and trade barriers are unstable, but we do not wish to sever our relations,” Beasley remarked.

At the time of writing, Bitcoin is trading at $96,500, reflecting a daily increase of 2.1%.

Among the top 10 cryptocurrencies by market capitalization, a positive trend of around 2% has been observed, with TRON standing out slightly with a decrease of 0.8%.

Today at 21:00, a meeting of the Federal Reserve is set to occur, followed by a press conference from Chairman Jerome Powell half an hour later.

The Volmex implied volatility indexes suggest that price fluctuations for key cryptocurrencies are expected to remain moderate.

Specifically for Bitcoin, an expected price range fluctuation of 2.56%, or $2,470 in either direction, has been reported by CoinDesk.

For Ethereum and Solana, the anticipated fluctuations are 3.45% and 4.3%, respectively.

It’s worth noting that the value of digital gold might reach $500,000 or even $1 million during this market cycle, according to Binance founder Changpeng Zhao.

Earlier, Standard Chartered urged investors to buy Bitcoin and projected its price could rise to $120,000 in the fourth quarter.