Bitcoin’s price has seen a notable uptick today, climbing over 3% to surpass $97,000 as of May 7, 2025. This surge in value comes amid a flurry of activity in the cryptocurrency market, driven by swirling hopes for a potential US-China trade agreement and significant movements in the derivatives market.
Trade Winds Boost Bitcoin
Early Asian trading hours set the stage for Bitcoin’s rise, briefly touching $97,700. The momentum is largely attributed to the buzz surrounding possible trade negotiations between the United States and China. US Treasury Secretary Scott Bessent’s announcement of planned talks in Switzerland with China’s Ministry of Commerce has injected a fresh dose of optimism into global markets. “The current tariffs and trade barriers are unsustainable, but we don’t want to decouple,” Bessent remarked, hinting at a potential thaw in trade tensions. This aligns with recent reports of Bitcoin jumping above $97K as traders express optimism about a U.S.-China trade deal.
While the diplomatic overtures have buoyed spirits, skepticism lingers. Betting platform Polymarket indicates only a 25% chance of a deal being struck by June. Amidst this backdrop, all eyes are on the Federal Reserve’s meeting today, with traders largely expecting interest rates to remain unchanged. This cautious stance by the Fed is reflected in the CME FedWatch Tool, showing a 95.6% probability of no rate cut.
Derivatives Market Signals Strength
Bitcoin’s rally isn’t just a result of geopolitical currents. A substantial $83.6 million in short Bitcoin positions have been liquidated over the last 24 hours, underscoring bullish momentum in the derivatives market. This wave of liquidations, where bearish traders are compelled to sell, echoes the pattern seen in late March when a similar clearing of $122 million in shorts coincided with a 6% price increase. As detailed in our recent article, Bitcoin surged past $94,000 amid growing institutional interest and market optimism, highlighting a trend of increasing confidence among investors.
Open interest in Bitcoin futures has also surged, climbing 26% from $50.8 billion on April 8 to $64.4 billion currently. This uptick indicates a growing number of traders are entering the fray, perhaps encouraged by Bitcoin’s resilience and recent price movements. The funding rate, which briefly dipped negative, has since bounced back to 0.0046%, lending further credence to the bullish sentiment.
Chart Patterns and Price Targets
Bitcoin’s ascent is not happening in a vacuum; it is part of a breakout from a falling wedge pattern—a classic bullish reversal signal. By reclaiming essential support levels, including major moving averages and the yearly open at $93,000, Bitcoin has set its sights on breaching the $98,000 resistance. Successfully crossing this threshold could propel the cryptocurrency to the falling wedge’s technical target of $100,200.
However, caution is warranted. The Relative Strength Index (RSI) reveals a potential bearish divergence, which could indicate weakening momentum. A close below $93,000 might reverse the upward trend, pushing Bitcoin back toward the $90,000-$87,000 range, where key moving averages reside.
In summary, today’s Bitcoin rally is underscored by a confluence of market dynamics—ranging from global trade optimism to strategic movements within the derivatives arena. While the path forward is fraught with uncertainties, the current landscape presents both opportunities and risks for traders. As always, due diligence and careful analysis remain paramount in navigating the ever-evolving cryptocurrency market.
Source
This article is based on: Why is Bitcoin price up today?
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
