Bitcoin is set to face volatility as US-China trade talks risk collapsing in Switzerland.

Bitcoin (BTC) faces an important weekend as high-level trade negotiations between America and China take place in Switzerland. These negotiations are overshadowed by a lack of trust, conflicting narratives, and no compromise on tariffs.

For the cryptocurrency market, which has already been under pressure from macro factors and decreasing liquidity, the outcome or failure of these negotiations could trigger significant price fluctuations early next week.

US-China trade talks signal volatility for Bitcoin this weekend

With the low trading volume characteristic of the weekend, Bitcoin may experience significant volatility from May 10 to 11. The U.S. Secretary of the Treasury recently indicated plans to meet with Chinese Vice Premier He Lifeng in Switzerland on these two days.

This meeting will mark the first official trade negotiations since President Trump raised tariffs on imports from China to 145%. The outcome or breakdown of what happens could exacerbate weekend volatility.

"Thanks to POTUS, the world has come to America, and China is the missing piece – we will meet on Saturday and Sunday to discuss our common interests. The current tariffs and trade barriers are unsustainable, but we do not want to be separated. What we want is fair trade," Bessent stated.

On Thursday, the Chinese embassy in Washington issued a blunt statement ahead of the meeting. The spokesperson directly contradicted the U.S. statement regarding who initiated the discussions in this statement.

"Negotiations were held at the request of the American side... China will never accept a situation where America says one thing and does another," reads a passage from the statement.

The Chinese Ministry of Foreign Affairs also emphasized this message and issued a subsequent message through spokesperson Lin Jian.

"Pressuring or forcing China in any way is simply ineffective. We will firmly defend our legitimate interests and uphold international fairness and justice," Jian wrote.

These remarks indicate that Beijing remains very skeptical about America's intentions. This is particularly true after Washington reaffirmed that they would not lower taxes before negotiations begin.

No side has made any specific concessions ahead of the meeting. Based on this, cryptocurrency traders are concerned that the summit may end in another diplomatic stalemate.

Bitcoin, approaching 100,000 USD, is particularly susceptible to global risk sentiment.

Any signs of escalation could act as a catalyst for volatility. Conversely, even a symbolic thaw in relations could trigger a bull run.

The broader macro context is also changing. As BeInCrypto reported, China has cut interest rates and ramped up liquidity injections earlier this week. This is happening in the context of a broader effort to offset the domestic economic downturn.

Although these stimulus efforts have positive implications for risk assets, geopolitical tensions may overshadow this signal.

For cryptocurrency traders, the concern is whether China's monetary easing can outweigh the pull of an unresolved trade war.

In addition to speculation, President America Donald Trump hinted at a "very important trade deal" announcement on Friday. He stated that it involves a "large and highly respected nation." Although he did not name China, this timing cannot be overlooked.

"A major press conference tomorrow at 10:00 AM, in the Oval Office, regarding a significant trade agreement with representatives of a major and highly respected nation. This is the first of many agreements," Trump posted on Truth Social.

With market participants pricing in weekend volatility, Bitcoin may once again serve as a direct indicator of geopolitical risk.

If the meeting in Switzerland presents a modest roadmap forward, cryptocurrencies could benefit from renewed investor confidence. However, if negotiations collapse due to a lack of trust and rigidity over tariffs, a wave of liquidations and a rush into safe assets could occur.

This weekend, Bitcoin will not only trade based on charts; it will trade based on the balance of global power.

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