Bitcoin (BTC) faces a critical weekend as high-level trade negotiations between the U.S. and China take place in Switzerland. These talks are overshadowed by distrust, conflicting narratives, and a lack of compromise on tariffs.
For cryptocurrency markets, which are already facing macroeconomic challenges and reduced liquidity, the outcome or failure of these negotiations could cause sharp price fluctuations at the beginning of the week.
Negotiations between the U.S. and China indicate Bitcoin's volatility this weekend.
With low trading volumes typical for weekends, Bitcoin may experience significant volatility between May 10 and 11. The U.S. Treasury Secretary recently indicated plans to meet with Chinese Vice Premier He Lifeng in Switzerland during these two days.
This meeting will mark the first official trade negotiations since President Trump raised tariffs on Chinese imports to 145%. The outcome or failure of these negotiations could amplify weekend volatility.
"Thanks to the U.S. president, the world is coming to the U.S., while China remains an absent part—we will meet on Saturday and Sunday to discuss our common interests. Current tariffs and trade barriers are unsustainable, but we do not want a rupture. We seek fair trade," Bessent stated.
On Thursday, the Chinese embassy in Washington issued a sharp statement ahead of the meeting. The spokesperson directly contradicted U.S. claims about who initiated the discussions.
"Negotiations are being held at the request of the American side... China will never accept a situation where the U.S. says one thing and does another," the statement excerpt reads.
The Chinese Foreign Ministry reiterated this message and issued an additional statement through its spokesperson Lin Jian.
"Pressure or coercion from China in any way simply doesn’t work. We will resolutely defend our legitimate interests and uphold international justice and fairness," Jian wrote.
The rhetoric suggests that Beijing remains deeply skeptical of U.S. intentions. This is especially relevant after Washington confirmed it would not reduce tariffs ahead of the negotiations.
Neither side is offering any concrete concessions ahead of the meeting. As a result, crypto traders fear that the summit may end in yet another diplomatic deadlock.
Bitcoin, approaching $100,000, is particularly vulnerable as it remains tethered to global risks.
Any hint of escalation could act as a catalyst for volatility. Conversely, even a symbolic warming of relations could trigger a relief rally.
The broader macroeconomic backdrop is also shifting. According to BeInCrypto, China cut interest rates and increased liquidity injections earlier this week. This is occurring amid a broader push to counteract internal economic slowdown.
While these stimulus efforts have bullish implications for risk assets, geopolitical tensions could drown out this signal.
For crypto traders, the question is whether China's easing of monetary policy will outweigh the burden of the unresolved trade war.
Fueling further speculation, U.S. President Donald Trump hinted at an announcement regarding a "very important trade deal" on Friday. He stated that it pertains to a "great and highly respected country." Although he did not name China, the timing cannot be ignored.
"A major press conference tomorrow at 10:00 AM in the Oval Office regarding a major trade deal with representatives of a great and highly respected country. The first of many," Trump posted on Truth Social.
Given that market participants are factoring in weekend volatility, Bitcoin might once again serve as a live barometer of geopolitical risks.
If the meeting in Switzerland leads to a modest roadmap forward, the cryptocurrency could benefit from renewed investor confidence. However, if negotiations collapse due to distrust and tariff rigidity, a wave of liquidations and a search for safe assets may ensue.
This weekend, Bitcoin will not only trade against charts; it will trade against the global balance of power.#BTCBreaks99K #BTCtrade #BinanceSquare #Write2Earn #Binance $BTC