Bitcoin Nears Record High Amid US-China Trade Hopes, Boosting Risk Appetite Across ASX 200

May 07, 2025 01:12 PM AEST | By Team Kalkine Media

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Bitcoin Nears Record High Amid US-China Trade Hopes, Boosting Risk Appetite Across ASX 200

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Highlights

Bitcoin climbs above $US97,500

US-China talks drive risk-on sentiment

Iron ore and Brent oil prices also advance

Bitcoin surged past $US97,500 on Wednesday, driven by renewed optimism surrounding the upcoming trade discussions between the United States and China. The digital currency’s rally came as market participants anticipated a potential de-escalation in trade tensions, sparking a broader risk-on sentiment that lifted global markets, including the ASX 200.

Earlier in the session, Bitcoin marked its second-highest price since February before settling near $US96,627, recording a 2.1% intraday gain. This upward move reflected growing investor confidence that constructive outcomes from the trade talks could reinvigorate global economic momentum, potentially easing tariff-related pressures that have weighed on international trade.

The talks are set to commence on Thursday in Switzerland, where US and Chinese delegates will meet to explore common ground on trade policies. The positive market sentiment extended beyond cryptocurrencies, pushing up commodity prices such as iron ore and Brent crude oil. Rising commodity prices are often seen as a bullish indicator for resource-rich economies like Australia, giving a potential boost to related sectors listed on the ASX 200.

In this context, resource and energy companies saw notable attention. For example, mining giant BHP Group (ASX:BHP) and iron ore player Fortescue Metals Group (ASX:FMG) may benefit from the uptick in raw material prices. Meanwhile, energy producers like Woodside Energy Group (ASX:WDS) could gain momentum if the trend in oil prices continues upward.

Such global developments also have indirect implications for income-focused investors. While risk assets gain attention, defensive strategies like exploring ASX dividend stocks remain relevant for portfolio diversification. Companies like Telstra Group (ASX:TLS), known for consistent dividends, continue to be closely watched in this evolving market backdrop.

As investor sentiment improves, sectors tied to global trade, commodities, and energy are drawing increased focus. This market backdrop also reinforces the importance of keeping a balanced view—tracking international developments while aligning with strategies that suit individual financial goals.

Looking ahead, the outcome of the US-China talks could set the tone for markets in the weeks to come, making Thursday’s discussions in Switzerland a closely monitored event across both Wall Street and the ASX 200 landscape.

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