Bitcoin Soars Above $97K as Market Anticipates U.S.-China Trade Resolution

Bitcoin Surpasses $97K Amid U.S.-China Trade Talks, But Traders Remain Cautious About Immediate Deal

Bitcoin (BTC) has surged past $97,000 during the Asian trading session as optimism grows that the U.S. and China are advancing trade talks. However, despite the excitement, skepticism lingers in the market about the likelihood of a deal being finalized in the short term.

Chinese state media reported that the U.S. has proactively reached out to China through multiple channels in hopes of resolving tariff issues. While the news has given a boost to Bitcoin’s price, markets remain cautious, with betting platforms like Polymarket assigning only a 20% chance that a deal will be struck by June. The market appears to be wary of the political and economic complexities that may delay a resolution.

In terms of altcoins, Dogecoin (DOGE) led the way with a 4% rise in the past 24 hours, while other major cryptocurrencies such as Cardano (ADA), XRP, ether (ETH), and Binance Coin (BNB) experienced moderate gains of 1-3%. The broader CoinDesk 20 index rose by 2.2%, reflecting overall market strength.

On the downside, Movement’s MOVE token continued its slide, dropping 21% after the company confirmed that founder Rushi Manche was suspended due to an investigation into potential token manipulation. The company’s response to the scandal has added to the token’s woes, further eroding its value.

Despite Movement’s challenges, the wider cryptocurrency market seems to be benefiting from renewed optimism, with Bitcoin’s rise above $90,000 spurring hopes that it will soon breach the $100,000 mark. Analysts have pointed to continued institutional interest and strong liquidity as key factors supporting Bitcoin’s bullish trajectory.

Flowdesk, a trading and technology firm, noted in a recent report that momentum is building across the crypto market, especially in altcoins and speculative tokens. The company highlighted strong market liquidity, driven by both spot buying and a surge in institutional interest. Bitcoin ETFs, in particular, have seen a $1.5 billion inflow, further fueling demand from institutional investors.

Meanwhile, Strategy’s ongoing Bitcoin purchases are also contributing to the positive sentiment, with Michael Saylor recently announcing that the firm is raising $21 billion for additional Bitcoin acquisitions. Presto Research noted that investors are increasingly impressed by Strategy’s institutional sophistication, with new valuation tools like BTC Torque adding credibility to its approach.

AI Tokens Gain Traction as Kava Reaches 100K Users

In another sector of the cryptocurrency market, AI-related tokens saw positive movement, particularly following Kava Labs’ announcement that it has surpassed 100,000 users on its decentralized AI platform. This news has spurred a 3% increase in the AI token market, outpacing the broader CoinDesk 20 index, which rose by 1.8%.

Kava Labs’ Scott Stuart explained in an email to CoinDesk, “Kava’s focus on decentralized AI with verifiability and privacy is resonating with users, especially those in the Web3 space who want to avoid centralized AI systems controlled by a few corporations.” This shift toward decentralized, transparent AI models is gaining momentum globally, as more users seek alternatives to opaque, centralized systems.

With decentralized AI platforms like Kava continuing to expand their user base, the sector is drawing increasing attention as a promising area of growth within the broader crypto ecosystem. As the market recognizes the value of decentralized, transparent AI, Kava’s success may serve as a model for other platforms looking to disrupt the traditional AI landscape.

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