Bitcoin Surges Toward $105K on Global Peace Hopes and U.S.-China Trade Reset

By Stephen Alpher | May 11, 2025 | 5:28 a.m.

In a dramatic weekend rally, Bitcoin (BTC) soared to just under $105,000, marking its highest level since late January and posting a 1.5% gain in the last 24 hours. Ether (ETH) outpaced Bitcoin’s gains, rising 7.7% in the same period, continuing its recent trend of outperforming.

What’s Behind the Crypto Surge?

Three major global headlines broke Saturday evening that have sparked investor optimism and sent markets moving:

1. U.S.-China Trade Reset Announced

Former President Donald Trump, speaking from Switzerland where trade talks were being held, said the U.S. and China have reached what he called a "total reset" in their trade relationship.

“A very good meeting today,” Trump posted on Truth Social. “Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!”

The news has sparked optimism on Wall Street, with futures for the S&P 500 up 1.2% in early premarket trading and tech-heavy Nasdaq futures rising 1.6%, as investors anticipate a possible reduction in tariffs and greater market access for U.S. companies in China.

2. India-Pakistan Ceasefire

Earlier in the day, Trump also announced a “full and immediate” ceasefire between India and Pakistan, easing tensions that had been escalating in recent weeks. The development calmed fears of a potential regional war in South Asia, which could have disrupted global markets and trade routes.

3. Russia Signals Willingness for Peace Talks

Russian President Vladimir Putin added to the optimistic tone, saying he is “in the mood for serious talks with Ukraine” and suggested a new round of negotiations “without preconditions” in Turkey next week. While no deal is yet in place, the shift in rhetoric has investors hopeful for de-escalation in the long-running war.

Market Impact and Investor Sentiment

These geopolitical and economic shifts have injected fresh confidence into risk assets, particularly cryptocurrencies, which tend to perform well in an environment of optimism and lower global uncertainty.

  • Bitcoin’s rise to $104,500 reflects a 10.2% increase over the past 7 days, as traders anticipate more global liquidity and institutional interest.

  • Ethereum, which has benefited from a wave of renewed decentralized finance (DeFi) activity and lower transaction fees, is up 12.8% over the past week.

Stock markets globally are also reacting positively. In Asia, the Hang Seng Index rose 2.3%, while Europe’s Stoxx 600 was up 1.4% in early Sunday futures trading.