Bitcoin jumped past $97,000 for a short time after news broke that the United States had started trade talks with China. Even though a full deal may take years, markets responded quickly to the headline. Now, attention has turned to the Federal Reserve’s next move.
Key Points
- Trade negotiations between the US and China helped push Bitcoin price upward, even if only briefly.
- The Federal Reserve is expected to keep rates unchanged during today’s meeting.
- Investors are watching closely to see if Jerome Powell signals rate cuts or asks for more economic data.
The renewed conversation between Washington and Beijing created a spark across financial markets, including crypto. Traders welcomed the idea of progress, even though an actual agreement could take a long time to finalize.
Still, the bigger focus now is on the Federal Open Market Committee (FOMC) meeting happening today. Markets are listening for any hint from Fed Chair Jerome Powell about future rate cuts. However, Powell is expected to stay cautious.
Despite calls from both the White House and Wall Street for lower interest rates, Powell will likely wait for more signs of economic softness before making any changes. That approach may not sit well with markets hoping for faster action.
Broader trend points to continued investor interest. One of the biggest drivers keeping Bitcoin steady lately has been ETF inflows. Since mid-April, crypto ETFs—especially the Bitcoin ETFs—have pulled in more than $5.13 billion. That kind of buying pressure has helped stabilize the market and offset some of the uncertainty around central bank decisions.
The combination of global trade news and central bank policy is keeping markets on edge—and Bitcoin remains highly sensitive to both stories. At time of writing, the number one cryptocurrency is trading at $96,560.