Bitcoin’s price surged to $97,226.1 on May 2, 2025, marking its highest level since February. This uptick is attributed to renewed optimism over potential US-China trade talks and significant corporate investments in the cryptocurrency.
Market Drivers
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US-China Trade Prospects: China’s commerce ministry expressed openness to trade discussions with the United States, provided that the US reduces existing tariffs. This development has bolstered investor confidence, leading to increased risk appetite in the markets.
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Corporate Investment by Strategy: Strategy, formerly known as MicroStrategy, announced a $21 billion equity offering aimed at acquiring more Bitcoin. Despite reporting a fifth consecutive quarterly loss due to unrealized losses on its Bitcoin holdings, the company’s commitment to expanding its Bitcoin reserves has positively influenced market sentiment.
Cryptocurrency Market Overview
The positive momentum extended to other cryptocurrencies:
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Ethereum (ETH): Rose by 1.4% to $1,838.68.
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XRP: Increased by 0.5% to $2.2219.
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Solana (SOL): Gained 0.6%.
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Cardano (ADA): Advanced by 2.7%.
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Dogecoin (DOGE): Climbed 3.3%.
Conversely, the $TRUMP token experienced a decline of nearly 5%, attributed to profit-taking after a significant surge in late April.
