On the morning of May 7, the price of the leading cryptocurrency rose above $97,000. This surge was driven by signals of a potential easing in trade tensions between Beijing and Washington, alongside a policy shift by the People’s Bank of China (PBoC).
The PBoC announced a reduction in the seven-day reverse repo rate from 1.5% to 1.4%, as well as a 50 basis point cut in the reserve requirement ratio effective May 15, which will release liquidity amounting to 1 trillion yuan (~$138.6 billion).
Separately, official Beijing announced measures to support several key sectors, including technology and real estate.
A meeting aimed at “easing trade tensions” between US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer with Chinese Vice Premier He Lifeng is scheduled to take place from May 9-12 in Switzerland. The information was confirmed by China.
Thanks to @POTUS, the world has been coming to the US, and China has been the missing piece—we will meet on Saturday and Sunday to discuss our shared interests.
The current tariffs and trade barriers are unsustainable, but we don’t want to decouple.
What we want is fair trade. pic.twitter.com/MYc4XvqME8
— Treasury Secretary Scott Bessent (@SecScottBessent) May 6, 2025
“The current tariffs and trade barriers are unsustainable, but we don’t want to decouple,” commented Bessent.
At the time of writing, Bitcoin is trading at $96,500, with a daily growth rate of 2.1%.
Among the top 10 cryptocurrencies by market capitalization, there is a positive trend within 2%. TRON stands out with a decline of 0.8%.
Today at 21:00, a meeting of the FOMC will take place. Half an hour later, a press conference by Fed Chair Jerome Powell will begin.
Volmex implied volatility indices suggest that fluctuations in key cryptocurrency prices will be moderate.
Specifically, for Bitcoin, the expected range of change is within 2.56% or $2470 in either direction, according to CoinDesk.
For Ethereum and Solana, these figures are 3.45% and 4.3% respectively.
Back in April, Binance founder Changpeng Zhao suggested that the price of digital gold could reach $500,000 and even $1 million in the current market cycle.
Earlier, Standard Chartered urged investors to buy the leading cryptocurrency and predicted its price could rise to $120,000 in the fourth quarter.