Bitcoin Approaches $97K Amid Market Optimism
Bitcoin (BTC) surged past the $97,000 mark on May 7, 2025, buoyed by renewed optimism surrounding U.S.-China trade negotiations. The announcement of upcoming high-level talks in Switzerland between U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng signaled a potential easing of trade tensions, which had previously imposed significant tariffs on both sides. This development injected confidence into global markets, with Bitcoin climbing approximately 3% to $97,200, and U.S. stock futures also experiencing gains.
Despite this upward momentum, Bitcoin encountered resistance near the $97,700 level, a critical threshold that traders are closely monitoring. Technical analyses suggest that a decisive move above this resistance could pave the way for BTC to challenge its all-time high of $109,000. Conversely, failure to maintain support above $95,000 might lead to a short-term correction, potentially bringing the price down to the $90,000 range.
Market participants are also awaiting the Federal Reserve's interest rate decision, which could introduce additional volatility. While the consensus anticipates that rates will remain unchanged, any unexpected policy shifts could significantly impact Bitcoin's price trajectory. Furthermore, institutional interest continues to play a pivotal role in Bitcoin's market dynamics, with sustained inflows into spot Bitcoin ETFs, such as BlackRock's IBIT, underscoring the growing adoption of digital assets among traditional investors.
