Bitcoin Rises Above $97K as Trade Hopes and U.S. Crypto Strategy Improve Market Sentiment

Key PointsBitcoin rose 3.3% to over $97,000, supported by optimism over U.S.–China trade talks.The U.S. is advancing a Strategic Bitcoin Reserve, though full details are pending.States like New Hampshire are moving forward with crypto reserve legislation.The price of Bitcoin surged past $97,000, lifted by signs of easing trade tensions between the United States and China and renewed investor interest in crypto amid policy shifts under the Trump administration.Bitcoin (BTC) rose 3.3% in the last 24 hours to trade around $97,078.BTC 1D CHARTOther major tokens followed: Ether (ETH) gained 3%, Solana (SOL) rose 3.2%, and XRP climbed 2.3%.Futures tracking the S&P 500 also ticked up 0.5%, reflecting broader optimism in financial markets.“We don’t want to decouple [with China], what we want is fair trade,” U.S. Treasury Secretary Scott Bessent said in an interview late Tuesday. “We’ve agreed to talk.”Bessent and U.S. Trade Representative Jamieson Greer are scheduled to meet Chinese officials this week in Switzerland.U.S. Strategic Bitcoin Reserve Adds Policy BackingInvestors are also watching the U.S. administration’s crypto agenda. A March 6 executive order signed by President Donald Trump directed the creation of a U.S. Strategic Bitcoin Reserve, sourced from government-held BTC obtained via forfeiture. It also instructed agencies to explore budget-neutral methods for acquiring additional bitcoin.This initiative followed Trump’s earlier creation of a Presidential Working Group on Digital Assets, tasked with delivering a national framework by July 22.However, key reporting deadlines passed in April and May with no public disclosures. According to analysts at K33 Research, this lack of transparency could inject volatility into crypto markets if findings are released suddenly.U.S Bitcoin holdingsSeasonal Trends and Market PositioningHistorically, May has presented mixed outcomes for Bitcoin. Despite weak seasonal averages and high volatility, analysts at K33 argue that 2025 may break the pattern, driven by political catalysts and growing state-level interest.New Hampshire recently became the first U.S. state to approve a Strategic Bitcoin Reserve bill. Other states, including Texas, Illinois, Maryland, and Arizona, are considering similar legislation.On the trading side, analysts noted that Bitcoin derivatives remain subdued, with funding rates negative since April. This suggests traders are not overly leveraged long, limiting the risk of large liquidations in the near term.