Bitcoin rose on Wednesday, supported by improved risk sentiment following announcements of upcoming trade talks between the U.S. and China. The world’s largest cryptocurrency saw a 2.2% gain, reaching $96,446.50 by 01:22 ET (05:22 GMT), as investors eyed the $100,000 mark as the next major milestone. However, despite Wednesday’s uptick, Bitcoin remains trapped within a $90,000 to $97,000 range, a level it has maintained since the rally in late April stalled.
The price movement coincided with optimism in broader markets, as U.S. and Chinese officials confirmed that high-level trade talks would take place in Switzerland this week. The news raised hopes that tensions between the two largest economies might ease, potentially helping to reduce the impact of a prolonged trade war. Despite these prospects, optimism was tempered by statements from U.S. President Donald Trump, who indicated that he did not plan to sign any trade deals soon. Both Beijing and Washington have shown little interest in backing down after imposing over 100% tariffs on each other in April.
While the ongoing trade war has minimal direct influence on Bitcoin, the cryptocurrency market remains highly sensitive to shifts in sentiment. The uncertainty surrounding the U.S.-China trade relationship had earlier contributed to significant losses in Bitcoin earlier this year.
Adding to Bitcoin’s rally, business intelligence firm Strategy (formerly MicroStrategy) revealed on Tuesday that it had purchased 1,895 Bitcoin for $180 million. This move came just days after Strategy, the world’s largest corporate Bitcoin holder, announced plans to raise $21 billion through a stock offering to acquire more Bitcoin. However, the latest purchase was Strategy’s smallest since mid-March, suggesting caution amid the coin’s price volatility. The company reported a significant unrealized loss of $5.91 billion on its Bitcoin holdings in Q1.
While Bitcoin’s positive momentum influenced the broader crypto market, most altcoins struggled to break through their established trading ranges. Ether, the second-largest cryptocurrency, gained 2.2%, reaching $1,827.20, while XRP rose 1.6% to $2.1388. Other altcoins like Solana and Cardano saw modest gains, up 1% and 2.6%, respectively, while Polygon dropped by 0.6%. Among meme coins, Dogecoin rose 1.7%, while $TRUMP posted a slight loss of 0.4%.
Despite the broader market uptick, many cryptocurrencies continue to face challenges in breaking out of their recent price ranges, with volatility and uncertainty continuing to dominate the market.
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