Bitcoin experienced a surge on May 7, rising alongside Asian stocks and a strengthening dollar, fueled by the announcement of upcoming trade talks between the United States and China. The largest digital asset increased by approximately 3.2%, reaching over US$97,500 in Singapore before slightly decreasing, while Ether, the second-ranked cryptocurrency, climbed as much as 4.2%.

The rally was prompted by news that US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer are scheduled to meet with the Chinese government in Switzerland. This development has raised hopes for a potential agreement between the world's two largest economies, which could ease existing trade tensions. Sean McNulty, derivatives trading lead of APAC at FalconX Ltd, noted "renewed interest for Bitcoin topside", indicating market optimism regarding the trade talks. Demand for upside exposure in the options market has also increased, with activity concentrated in call options with a strike price of US$100,000, according to data from Deribit.

The positive momentum was further fueled by signals from both the US and China indicating a willingness to engage in substantive discussions to de-escalate the ongoing tariff conflict. US Treasury Secretary Scott Bessent announced plans to travel to Switzerland for trade talks, stating that "The current tariffs and trade barriers are unsustainable, but we don’t want to decouple." A spokesperson for China’s Ministry of Commerce confirmed Beijing’s readiness to engage, noting that senior US officials have hinted at adjustments to tariffs and expressed a desire to discuss tariff-related issues.

This news triggered an immediate positive reaction in financial markets. Bitcoin surged approximately 3%, climbing to around $97,200. Futures contracts for major US stock indices also jumped, with both Nasdaq 100 and S&P 500 futures up about 1% in the hours following the announcements.

However, amidst the positive trade developments, scrutiny has emerged concerning President Donald Trump’s personal and business ties to the cryptocurrency industry. Senator Richard Blumenthal, the ranking Democrat on the Senate Permanent Subcommittee on Investigations, initiated a preliminary inquiry into potential conflicts of interest and legal violations stemming from these ventures. Letters were dispatched to executives associated with Trump-affiliated crypto entities, including Bill Zanker of Fight Fight Fight LLC and Zach Witkoff of World Liberty Financial. The inquiries seek detailed information regarding ownership structures, investment sources, revenue generation, and protocols for identifying or blocking participation by individuals facing prosecution or investigation.

Senator Blumenthal's inquiry reflects broader concerns among Democrats regarding Trump’s crypto activities. Earlier this week, Representative Maxine Waters objected to a joint hearing on crypto market structure legislation, opting instead to host a separate hearing focused specifically on these crypto tie-ups. Adding to the legislative pressure, Senator Chris Murphy introduced a bill aimed at banning the US president and other senior government officials from issuing memecoins or other financial assets. While financial markets reacted positively to signs of a potential US-China trade détente, the unfolding scrutiny of President Trump’s personal crypto dealings introduces a new layer of political and regulatory complexity for the digital asset industry in Washington.