Bitcoin Breaks $104K as Investors React to Trade Breakthrough Between U.S. and China

Bitcoin surged past the $104,000 mark over the weekend, marking a significant milestone for the cryptocurrency market. 

This rally came shortly after U.S. President Donald Trump hinted at notable progress in trade talks with China. The news, which emerged from high-level negotiations in Geneva, was a powerful trigger for both traditional and digital markets, fueling bullish sentiment and driving up prices across multiple crypto assets.

While Bitcoin’s 2% jump was remarkable in itself, the momentum extended well beyond the flagship digital currency. Ethereum experienced a strong upward push, climbing over 10% to reach $2,600. Meanwhile, Dogecoin posted an even sharper rise of 21%, trading close to $0.25. This across-the-board uptrend highlights how tightly the crypto market remains connected to global economic developments, especially those involving the world’s leading economies.

The optimism stemmed from a lengthy diplomatic session at Villa Saladin in Geneva, where U.S. Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng engaged in nearly 10 hours of trade discussions. The outcomes of these talks were framed positively, with further meetings scheduled for the following day, indicating sustained momentum toward de-escalating trade hostilities.

Following the discussions, President Trump took to social media to characterize the meeting as productive and promising. His comments emphasized cooperation, the possibility of greater market access for American companies in China, and an overall “reset” of trade relations. This positive rhetoric contributed to a swift response from investors, particularly within the crypto sector, where market sentiment can shift rapidly based on macroeconomic signals.

The recent turbulence in trade policy began when the United States imposed a staggering 145% tariff on Chinese imports, prompting Beijing to immediately retaliate with its own 125% levy on American goods. The resulting strain disrupted trade flows worth over $660 billion annually, leading to rising costs, disrupted supply chains, and mounting concerns among global investors.

Adding to the tension, the U.S. introduced an additional 20% charge on Chinese fentanyl exports, highlighting the broader geopolitical dimensions of the trade conflict. Analysts note that any sign of reduced friction or a pathway to resolution is likely to spark renewed investor confidence, especially in sectors sensitive to macroeconomic instability.

The crypto market is particularly reactive in such scenarios. Investors often turn to Bitcoin and other digital assets as hedges against uncertainty, a trend that was visible once again as institutional flows surged. For instance, Bitcoin-focused exchange-traded funds (ETFs) swung back into positive territory, pulling in $142 million in new capital. This marked a sharp reversal from the $85 million outflows recorded just a day earlier. According to data from Farside Investors, Ark Invest’s ARKB ETF led the pack with nearly $55 million in fresh investment.

Investor confidence was also reflected in sentiment indicators. The Crypto Fear & Greed Index, a key barometer of market mood, climbed to 65, signaling a strong shift toward greed. A week earlier, it had hovered in a more cautious, neutral range.

Bitcoin’s new high above $104,000 is more than just a number; it reflects how cryptocurrency is becoming a barometer for broader financial sentiment. As global markets grapple with shifting policies and geopolitical uncertainty, Bitcoin remains a key asset class that mirrors investor hopes, fears, and reactions to unfolding events.

With trade negotiations between the U.S. and China set to continue, market watchers are paying close attention. Any further breakthroughs could ease tensions between the two economic giants and provide additional momentum for crypto and equity markets alike in the days ahead.