May 7, 2025 – Bitcoin ($BTC ) and Ethereum ($ETH ) are leading a crypto rally today, fueled by news of upcoming U.S.-China trade talks in Switzerland. BTC hit $97,500, up 2.8%, while ETH climbed above $1,830, reflecting a “risk-on” market mood. The rally signals growing investor confidence as global economic tensions may ease.
U.S.-China Talks Spark Hope
The catalyst? U.S. Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer will meet Chinese Vice Premier He Lifeng to discuss trade disputes, following President Trump’s new tariffs on Chinese imports. This first formal dialogue since Trump’s return has sparked optimism for a tariff war resolution, boosting risk assets like crypto. X posts captured the buzz, with one noting, “Bitcoin hits $97,400 as U.S.-China talks ignite a rally,” and another reporting BTC at $96,981, up 3.14% in 24 hours. U.S. stock futures rose, while gold dipped, highlighting the shift to riskier investments.
Bitcoin’s Bullish Breakout
Bitcoin surged to $96,500-$97,500, briefly crossing $97,000 on some exchanges. Analysts see $BTC as a hedge against economic uncertainty, thriving amid hopes of reduced global risks. Technically, Bitcoin cleared resistance at $95,500 and trades above its 200-day moving average, with $99,000 now in sight. Some predict $150,000-$200,000 by year-end if bullish trends persist, though Peter L. Brandt warns of a potential dip to $78,000 if macro conditions tighten.
Ethereum’s Strong Momentum
Ethereum jumped past $1,800, with Galaxy Research forecasting $5,500 this year, driven by Ethereum’s layer-2 adoption and ETF approvals. Trading volume for #ETH ETFs hit $1 billion on launch day in 2024, signaling institutional interest. Analysts eye $6,500-$7,000 by year-end, fueled by DeFi growth and a potential NFT revival. “Ethereum’s smart contract dominance and upgrades solidify its Web3 role,” said Bitget CEO Gracy Chen.
Market Trends and Outlook
The rally aligns with rising global liquidity and expectations of dovish Federal Reserve policies. China’s potential stimulus could further lift crypto and equities. However, regulatory risks, like past Chinese crypto bans, loom large. Investors should stay cautious, as trade talk outcomes or Fed decisions could spark volatility.
For now, the crypto community is euphoric. X posts highlight “new highs” and “bullish bets,” with one user stating, “BTC and ETH are soaring as global risks fade.” If the Fed remains dovish and trade talks progress, Bitcoin could test $99,000 soon, with Ethereum targeting $6,000. Yet, any setbacks could trigger pullbacks, so vigilance is key.
Disclaimer: Crypto markets are volatile. Always research before investing.
