Bitcoin Climbs Over $97K on Growing Optimism of a U.S.-China Trade Deal

Bitcoin Climbs Above $97K as U.S.-China Trade Talks Progress, but Market Cautious on Quick Deal

Bitcoin (BTC) surged past $97,000 early this morning in Asia as hopes rise over potential progress in the U.S.-China trade discussions. Despite the optimism, however, many market participants remain doubtful that a deal will be finalized before June.

China’s state media reported that the U.S. has made proactive efforts to engage China in discussions over tariff issues, but traders on platforms like Polymarket are giving only a 20% chance that an agreement will be reached by June. The ongoing political rhetoric from the White House is leading some to believe that any trade deal will take longer to materialize.

Dogecoin (DOGE) took the lead among major cryptocurrencies, rising by 4% in the past 24 hours. Other altcoins, including Cardano (ADA), XRP, ether (ETH), and BNB, saw moderate gains, ranging from 1-3%, with the CoinDesk 20 index rising by 2.2%.

Movement’s MOVE token, on the other hand, extended its losses to 21% after the company confirmed the suspension of its founder, Rushi Manche, following a CoinDesk investigation into alleged token manipulation.

Despite this, the broader crypto market appears to be in a more positive mood, as growing optimism around a potential U.S.-China trade agreement has put Bitcoin’s price target back on the table. Market observers believe Bitcoin could reach $100,000 soon, driven by factors like strong institutional demand and continued buying momentum from notable players like Strategy.

Flowdesk, a trading and technology group, noted that Bitcoin’s recent performance above $90,000 is fueling positive market sentiment. The group observed strong liquidity across both spot and derivative markets, including rising Bitcoin ETF inflows amounting to $1.5 billion, further bolstering institutional participation.

Meanwhile, Bitcoin-focused companies like Strategy continue to play a significant role in driving Bitcoin’s value. Michael Saylor recently announced that the company is raising $21 billion to purchase more BTC, signaling continued confidence in the cryptocurrency.

Presto Research highlighted Strategy’s growing sophistication in institutional markets, noting that its use of new valuation frameworks and a focus on accurately pricing fixed-income instruments is making it increasingly attractive to investors.

Kava AI Tokens See Growth Following User Milestone

AI tokens have also shown positive price action, with Kava Labs reporting a milestone of 100,000 users on its decentralized AI platform. The news has contributed to a 3% rise in the AI token segment, outperforming the broader CoinDesk 20 index, which has gained 1.8%.

According to Kava Labs’ Scott Stuart, the platform’s growing user base can be attributed to its unique value proposition of verifiability and privacy. “Kava AI offers decentralized AI that is transparent, unlike the centralized systems that dominate the market today,” Stuart said. This transparency is attracting users from both Web3 communities and those seeking an alternative to the opaque models of corporate-controlled AI.

The growing demand for decentralized AI platforms like Kava highlights a shift toward more transparent, open-source AI solutions, which could lead to wider adoption globally.