Bitcoin rebounded Monday morning, rising from around $105,600 to $107,800 as investor attention turned to high-stakes US-China trade negotiations beginning in London.

The cryptocurrency had recently surged to a record high near $112,000 before retreating to $101,000 amid a flurry of negative headlines, including stalled trade talks, renewed ETF outflows, and former President Trump’s threat to double steel tariffs.

Backdrop: From Tariff Truce to Renewed Tensions

This latest round of talks follows a mid-May agreement in which both nations pledged to cut reciprocal tariffs—from as high as 125% down to 10%—for a 90-day period. However, tensions quickly reignited. On May 30, Trump accused China of “totally violating” the deal, citing restrictions on rare earth exports. Beijing rejected the claims as “groundless,” criticizing new US curbs on AI chips, chip design software, and student visas.

Focus of London Trade Discussions

According to the White House, the London discussions aim to reinforce the Geneva framework, focusing on cooperation in technology, manufacturing, critical minerals, and agriculture. The talks were announced Friday after a phone call between Trump and Chinese President Xi Jinping.

China’s delegation is led by Deputy Prime Minister He Lifeng and will meet with US Commerce Secretary Howard Lutnick, Treasury Secretary Scott Bessent, and Trade Representative Jamieson Greer.

Bitcoin’s Outlook Tied to Diplomatic Progress

While Bitcoin’s momentum has returned, its short-term trajectory may hinge on the outcome of these talks, expected to last at least one day. As of publication, Bitcoin was trading near $107,700, up nearly 2% in the past 24 hours.