Cryptocurrencies, led by Bitcoin, saw a notable surge driven by renewed investor optimism regarding the resumption of trade talks between the United States and China, alongside positive expectations for upcoming U.S. monetary policy decisions.

Bitcoin rose by 1.7%, surpassing $104,000 and marking its highest level since February 2025, with forecasts suggesting it could soon break through the $105,000 barrier.

Meanwhile, Ethereum posted a 5% gain, climbing above $2,400, with momentum pointing toward a potential rally to $2,500 amid the current positive market sentiment.

This rally comes amid reports that U.S. Treasury Secretary Scott Bisent and U.S. Trade Representative Jamison Greer are preparing to meet with Chinese officials in Switzerland, aiming to ease ongoing trade tensions.

Bisent stated that the United States seeks “fair trade,” not “decoupling” from China.

These developments follow a period of heightened trade tensions between the two nations, which saw elevated tariffs imposed by both sides. Such tensions had negatively impacted global markets, including the cryptocurrency sector. However, renewed optimism surrounding the trade talks has restored investor confidence, prompting increased investment in digital assets, often considered relatively stable stores of value.

Cryptocurrencies' Sensitivity to Geopolitical Conflicts

Historically, Bitcoin reached its all-time high of $109,241 last January, fueled by widespread optimism about the U.S. administration’s supportive stance toward cryptocurrencies. Yet, America’s imposition of sweeping tariffs disrupted the price growth of digital assets. Now, with trade dialogue between China and the U.S. back on track, optimism appears to be reviving within the crypto market.