Bitcoin rose alongside Asian stocks following reports of plans by the U.S. and China to conduct trade negotiations, Bloomberg writes.
The largest digital asset gained over 3% at its peak, exceeding $97,500 on Wednesday morning, but then reduced its rise. By the time of writing, BTC was trading around $97,000 after rising to an intraday peak of $97,840.
The morning rally followed news that U.S. Treasury Secretary Scott Bessent and Trade Representative Jamison Greer would meet with the Chinese government this week in Switzerland, raising hopes for an agreement between the world's two largest economies and a reduction in trade tensions.
Meanwhile, India stated early Wednesday that it conducted pinpoint military strikes against Pakistan, which in response reported the downing of five Indian aircraft.
"We are seeing new interest in buying bitcoin on the rise: the market is optimistic about a positive outcome from the negotiations this weekend," noted Sean McNulty, head of derivatives trading in the Asia-Pacific region at broker FalconX Ltd.
While traders are "completely ignoring" the conflict in Pakistan, McNulty added.
Investors in digital assets will also be watching the Federal Reserve's decision, expected later on Wednesday; the regulator is expected to keep rates unchanged.
"Today we see broad interest in risk, mainly due to the resumption of trade dialogue between the U.S. and China. Global stock markets are rising, gold is retreating, and the dollar is slightly strengthening. This sentiment also supports the crypto market," said QCP Capital trader Yuan Jung Tang.
