Bitcoin’s price surpassed $97K amid positive outlooks for U.S.-China trade talks, though skepticism remains about a quick deal. Dogecoin rose by 4%, while altcoins showed gains. Institutional investment is increasing, with a noted $1.5 billion in Bitcoin ETF inflows, and Kava Labs achieving a significant user milestone in the AI sector.
Bitcoin (BTC) has climbed above the $97,000 mark, largely fuelled by growing optimism regarding potential trade talks between the U.S. and China. However, many market participants express reservations about a deal being reached imminently, with some suggesting that the negotiations could stretch on for months. Despite this, analysts suggest that Bitcoin could still reach the sought-after $100,000 threshold, attributing this to factors such as strong liquidity and increasing institutional interest in cryptocurrencies.
In recent trading sessions, Bitcoin’s ascent has been supported by good news from across the market. Dogecoin (DOGE) led the charge among major cryptocurrencies, posting a 4% increase over the last 24 hours. Other notable performers included Cardano (ADA), XRP (XRP), and Ethereum (ETH), experiencing gains between 1-3%. The broader CoinDesk 20 index also gained, rising 2.2% overall.
Conversely, Movement’s MOVE token has struggled, dropping to a 21% loss after allegations of token manipulation surfaced, resulting in the suspension of its founder, Rushi Manche. Such volatility has added an interesting layer to the trading landscape amidst an otherwise buoyant market.
Moreover, predictions on the Polymarket platform suggest traders are sceptical about a trade agreement between the U.S. and China materialising in the short term; they estimate only a 20% chance of a deal being secured before June. Recent hawkish comments from officials in the White House seem to dampen enthusiasm for a quick resolution to ongoing tariff disputes.
Market sentiments have shifted following the initial panic caused by tariffs introduced earlier in the year, which had knocked Bitcoin’s price down. Nevertheless, the apparent start of a trade thaw has reignited optimism, with many traders once again considering Bitcoin’s journey towards $100,000.
Market watchers are noting that overall cryptocurrency metrics look solid. Flowdesk, a trading and technology group, commented on the increasing momentum in crypto trading, emphasising broadening spot flows and rising altcoin activity. BTC is now fluctuating above $90,000, and interest levels across both spot and derivatives markets have improved notably. The trading atmosphere appears to favour risk, suggesting further increases may be on the horizon.
Institutional demand is also booming. Reports indicate that there have been significant inflows for Bitcoin ETFs, with approximately $1.5 billion entering the market as entities buy into Bitcoin. Investors are encouraged by firms like Strategy, which recently announced plans to raise $21 billion for Bitcoin purchases, showcasing a strong institutional conviction in the asset.
Turning to the realm of artificial intelligence (AI), Kava Labs recently reported a milestone of reaching 100,000 users on its decentralised AI platform. This news has spurred a 3% increase in AI-related tokens, outpacing the CoinDesk 20’s increase of 1.8%. Kava Labs’ Scott Stuart highlighted the appeal of their platform, noting how users are increasingly drawn to options that provide privacy and verifiability, as accessibility via decentralised platforms contrasts with traditional, opaque systems governed by a few corporations.
