Bitcoin Holds Above $97K Amid U.S.-China Trade Talks, but Skepticism Remains for June Deal
Bitcoin (BTC) has risen above $97,000 in the Asian morning hours, as market participants remain cautiously optimistic about the U.S.-China trade talks. However, there is growing skepticism that a trade deal will be finalized before June.
China’s state media reported that “The U.S. has proactively reached out to China through multiple channels, hoping to discuss the tariff issue.” Despite the positive sentiment, many remain doubtful that an agreement will be reached within this month.
Dogecoin (DOGE) led the charge among major cryptocurrencies, climbing 4% in the last 24 hours. Cardano’s ADA, XRP, ether (ETH), and BNB also saw gains ranging from 1-3%, with the broader CoinDesk 20 (CD20) index rising by 2.2%.
On the flip side, Movement’s MOVE token extended its decline to 21% after the company confirmed the suspension of its founder, Rushi Manche, following an exposé by CoinDesk that raised concerns over potential token manipulation.
Market bettors on Polymarket are less optimistic, assigning just a 20% chance of a U.S.-China trade deal being reached by June. Many believe that the hawkish stance from the White House could delay a resolution, pushing it past the expected timeline.
Earlier this year, the market reacted negatively to the aggressive tariffs announced by the U.S. government, which caused a significant dip in Bitcoin’s price. However, with this trade détente between the two nations, $100,000 Bitcoin is once again a possibility.
Other indicators in the crypto market remain promising, suggesting Bitcoin’s upward momentum might continue. According to trading and technology group Flowdesk, the crypto market is experiencing positive shifts, with increasing spot flows, rising altcoin activity, and stronger market liquidity.
“Momentum continues to build across crypto with spot flows broadening, alt activity heating up and subtle but meaningful shifts in market structure,” Flowdesk noted in a recent market update.
Despite recent volatility, Bitcoin’s range above $90K is fueling greater risk appetite in both spot and derivatives markets. In particular, Bitcoin ETF inflows have surged, reaching $1.5 billion, indicating a growing institutional demand.
Investors are also keeping an eye on Strategy’s plans to expand its Bitcoin holdings. As CoinDesk reported, Michael Saylor revealed that Strategy is raising $21 billion for additional BTC purchases.
In a recent report, Presto Research highlighted how Strategy’s institutional approach is gaining traction. Their focus on new valuation frameworks like BTC Torque and accurate pricing for fixed-income instruments is impressing many investors.
AI Tokens Gain as Kava Reaches 100K Users on Decentralized AI Platform
In other crypto news, Artificial Intelligence (AI) tokens are experiencing a rise in value following Kava Labs’ announcement that it has reached 100,000 users on its decentralized AI platform. Data from CoinGecko shows AI tokens have risen by 3%, outperforming the CoinDesk 20 index, which is up 1.8%.
Kava’s Scott Stuart explained the growing interest in decentralized AI, stating, “People are turning to Kava AI because it offers two things most platforms don’t: verifiability and privacy.” Stuart added that the decentralized nature of Kava’s platform has attracted both Web3 enthusiasts and individuals looking for an alternative to centralized AI systems.
With interest in Kava and decentralized AI growing, Stuart sees more users worldwide seeking transparency and verifiability in AI, as opposed to relying on opaque, centralized models controlled by a few corporations.
