Bitcoin skyrocketed beyond the $104,900 mark on Saturday night, climbing by 2% after U.S. President Donald Trump revealed meaningful advancements in trade discussions with Chinese officials. This bullish momentum ignited a broader rally across the digital asset space, with Ethereum jumping over 10% to reach $2,600 and Dogecoin spiking by 21% to nearly $0.25. These developments once again emphasized the crypto market’s close ties to international political and economic events.
Trade Negotiations in Switzerland Fuel Investor Optimism
The surge in crypto prices stemmed from marathon trade talks in Geneva, held at Villa Saladin, where U.S. Treasury Secretary Scott Bessent and China’s Vice Premier He Lifeng spent more than ten hours in direct negotiations. Talks are scheduled to continue on Sunday, hinting at potential de-escalation of long-standing economic friction between Washington and Beijing.
Trump took to Truth Social to comment on the day’s progress, writing, “Productive discussions with China today in Switzerland. Covered a wide range of topics and reached many agreements. We’ve initiated a complete reset, conducted in a respectful and results-driven atmosphere. For the benefit of both nations, we are working toward greater access for American businesses in China. TREMENDOUS PROGRESS!”
His post was the clearest indication so far of a potential easing in tensions, quickly sparking optimism in financial circles and particularly within the cryptocurrency community, which often responds swiftly to major global economic cues.
Tariff Spat and Bitcoin’s Hedge Appeal
These diplomatic strides arrive on the heels of heightened tariff measures. Just a month earlier, the Trump administration increased import duties on Chinese goods to a peak of 145%, triggering a sharp countermeasure from China with a 125% tax on U.S. exports. The back-and-forth has severely impacted trade channels involving more than $660 billion in goods and services.
In addition, the United States has imposed a 20% surcharge on Chinese fentanyl-related chemical exports, while the rest of the 125% tariffs reflect broader disagreements over market barriers, regulatory practices, and state-supported industries in China.
With global markets on edge and analysts speculating about a possible tariff rollback, traders appear to be pouring capital into digital assets as a buffer against macroeconomic instability. Cryptocurrencies like Bitcoin, often seen as a barometer for risk and volatility, reacted immediately to signs of diplomatic improvement with strong upward price movement.
Institutional Demand Recharges Bitcoin’s Momentum
Besides geopolitical drivers, growing institutional interest has continued to bolster Bitcoin’s rally. Recent ETF data showed a remarkable turnaround, with Bitcoin-focused funds receiving $142 million in fresh inflows, reversing the previous day’s $85 million in outflows.
Among the major players, Ark Invest’s ARKB fund stood out by attracting $54.7 million in new investments, based on data from Farside Investors. This renewed appetite among institutional investors signaled growing confidence in the market’s direction and played a significant role in supporting Bitcoin’s price surge.
Investor sentiment also shifted noticeably, as the Crypto Fear & Greed Index jumped to 65—indicating a strong tilt toward “Greed”—after remaining in a neutral range just one week earlier. This index, often used to measure investor psychology, reinforced the broader bullish trend emerging in the market.
Bitcoin’s Climb Mirrors Global Financial Mood
Bitcoin’s break past the $104,900 threshold further cemented its reputation as a key asset for tracking global financial sentiment, especially in times of uncertainty. Many analysts view Bitcoin as a proxy for investor reaction to unpredictable political or economic conditions.
As trade discussions between the U.S. and China resume on Sunday, global markets will remain attentive to any fresh statements or outcomes that could influence tariffs, business regulations, or diplomatic relations. Any signal pointing toward continued cooperation could intensify the current rally across both traditional financial markets and digital assets.
At the same time, market participants are closely watching institutional activity, macroeconomic indicators, and policy shifts that could further shape Bitcoin’s trajectory. In an environment where diplomacy, finance, and innovation converge, Bitcoin’s role as a real-time gauge of market confidence becomes increasingly central to global investing strategies.
