Bitcoin has rebounded after the United States and China agreed to hold new trade talks. The announcement followed a call between US President Donald Trump and Chinese President Xi Jinping. The market responded positively, with Bitcoin recovering above the $104,000 level after dipping earlier in the day. The new talks are expected to ease concerns among investors and reduce global market uncertainty.

Bitcoin Recovers Above $104,000 After Earlier Drop

Bitcoin’s price rebounded from an intraday low of $103,944, according to data from CoinMarketCap. The recovery came after both governments confirmed plans for renewed trade negotiations. The market had reacted to earlier concerns about tariffs and uncertainty in global trade policy.

The cryptocurrency quickly moved back above the $104,000 mark, with some analysts expecting a push toward $105,000. Trading activity increased following the announcement, reflecting renewed optimism among investors. Some traders see the psychological $104,000 level as an important support zone.

US and China Confirm Plans for New Trade Talks

President Trump stated via Truth Social that the call with Xi led to a “very positive conclusion.” He added that representatives from both countries would meet soon to continue the discussion. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer will represent the United States.

Chinese state broadcaster CCTV confirmed the trade talks in a report, quoting President Xi. Both sides aim to resolve pending issues and stabilize trade relations. These developments come after earlier tensions caused a market pullback when Trump accused China of breaking a previous agreement.

🚨 XI, TRUMP AGREE TO START NEW ROUND OF TALKS ASAP: CCTV

— *Walter Bloomberg (@DeItaone) June 5, 2025

Market Reaction to Previous Trade Dispute Developments

Last week, Bitcoin dropped sharply after Trump stated that China had breached the May agreement from Geneva. The news caused investors to worry about another trade war and hampered the progress risky assets had been enjoying.

On June 3, the United States decided to extend the break on tariffs for certain goods that come from China. The news brought short-term comfort to investors. After the update, Bitcoin went up to nearly $106,000.

Outlook for Bitcoin Amid Trade Uncertainty

According to the latest rebound, what happens globally is still a main factor for Bitcoin’s short-term moves. Even though crypto assets are not controlled centrally, changes in geopolitics usually affect how investors behave.

Regular news about the negotiations could give the broader market better prospects if deals are made. Both sides’ moves and announcements will be under constant scrutiny by analysts. The economy in general and the actions of central banks could have an impact on Bitcoin’s performance.

Latest records show that Bitcoin is selling for more than $104,000, and things have started to settle down on the market. The following significant resistance level is located at $105,000. Both news from the US and China are closely watched to decide the next direction for trading.