Bitcoin has skyrocketed from ~3% to $97,200 after we and China signaled future trade talks in Switzerland. The US Treasury Department of Bessent & China’s Commerce Department has confirmed its willingness to engage in tariff issues. US equity futures (NASDAQ 100, S&P 500) rose 1% to 1% in news of positive trade negotiations.
The substantial meltdown of frequently unfair trade relations between the US and China sent an optimistic shock through global financial markets from late Tuesday to Wednesday, sharply increasing risky assets, including Bitcoin.
The positive momentum came when officials from both countries showed mutual willingness to engage in substantive discussions aimed at eliminating the ongoing tariff dispute.
New hopes for a trade resolution were sparked by important statements from both sides.
US Treasury Secretary Scott Bescent announced plans to travel to Switzerland for trade talks with Chinese counterparts next weekend.
“Current tariffs and trade barriers are unsustainable, but we don’t want to separate them,” Bescent said, indicating a potential change in the US approach.
Reflecting this sentiment, a spokesman for China’s Ministry of Commerce confirmed that Beijing is ready to be involved.
“U.S. officials have made a series of comments suggesting adjustments to tariffs and expressed their desire to engage with China on tariff-related issues through various channels,” the spokesman said.
China has carefully evaluated these messages from the US side and after fully considering global expectations, China’s own interests and the appeal of American industry and consumers has decided to agree to its involvement with the US.
This news of an imminent high level of dialogue sparked an immediate positive response in the market.
Bitcoin (BTC) surged by about 3%, rising to around $97,200.
Futures contracts for major US stock indexes also jumped, with both the Nasdaq 100 and the S&P 500 futures rising about 1% in the time since the announcement.
In the hopes of trade, Trump’s crypto venture triggers scrutiny in the Senate
While the markets cheered on trade development, another undercurrent of political and regulatory scrutiny emerged regarding President Donald Trump’s personal and business relationship with the cryptocurrency industry.
Senator Richard Blumenthal, a ranking Democrat for the Senate Permanent Subcommittee on Inquiries, has launched a preliminary investigation into potential conflicts of interest and legal violations arising from these ventures.
On Tuesday, Senator Blumenthal sent letters to executives related to Trump genus crypto entities, including Bill Zanker’s Fight Fight Light LLC (linked to Trump Memocoin) and co-founder of World Liberty Financial (associated with USD1 Stubrecoin).
The letter also covers entities such as CIC Digital LLC (involved in Trump’s NFTS) and DTTM Operations LLC (Trump’s IP Rights Manager).
“The permanent subcommittee on investigations is conducting a preliminary investigation into potential conflicts of interest and violations of the law from President Trump’s cryptocurrency venture.
They explicitly questioned whether these companies “may allow for violations of government ethical requirements.”
The inquiry asks for more information on ownership structure, sources of investment (particularly related to foreign governments), revenue generation, and protocols to identify or block participation by individuals facing prosecutors or investigations.
Blumenthal also requested records related to the crypto business related to these Trump.
Because Democrats are in the Senate minority, Blumenthal currently lacks subpoena power for the investigation unless Sen. Ron Johnson, a Republican counterpart, signs the effort.
Senator Johnson’s office did not immediately respond to requests for comment.
This Senate investigation reflects widespread unrest among Democrats over Trump’s crypto activity.
Earlier this week, Maxine Waters, a leading Democrat on the House Financial Services Committee, opposed the joint hearing on crypto market structure laws and instead chose to hold another hearing that focuses specifically on those crypto partnerships.
Furthermore, recent statements from Sen. Reuben Gallego and several other Senate Democrats show that they do not support the current iteration of the Senate’s Stubcoin bill, but appear to be linked to these concerns as well.
The key trigger was an announcement by Eric Trump that Abu Dhabi-based investment firm MGX will use Trump’s USD1 Stablecoin for a $2 billion investment in the Binance cryptocurrency exchange.
In addition to legislative pressure, Sen. Chris Murphy introduced a bill on Tuesday aimed at banning the US president and other senior officials from issuing memecoin or other financial assets.
While financial markets have responded positively to signs of potential US-China trade dents, President Trump’s scrutiny of personal crypto trading developments introduces a new layer of political and regulatory complexity in Washington’s digital asset industry.
