Bitcoin and Ethereum Surge Amid Geopolitical Signals

The cryptocurrency market once again demonstrated its sensitivity to geopolitical risks. During the night of May 10–11, Bitcoin and Ethereum surged following news of trade negotiations between the US and China in Switzerland. Former President Donald Trump’s statements about rebooting bilateral relations were interpreted by investors as positive political signals.

Bitcoin and Ethereum Prices Reach Weekly Highs

The Bitcoin price soared to $105,000 — a level last seen in late January. At the same time, Ethereum’s price briefly exceeded $2,600, marking a 40% increase compared to May 8. After hitting these peaks, both cryptocurrencies saw a price correction, but still remained significantly higher than at the beginning of the week.

Geopolitics and the Crypto Market: A Powerful Correlation

Once again, political events played a crucial role in driving market sentiment and cryptocurrency volatility. Reports of potential US business expansion into the Chinese market acted as a strong fundamental growth driver for top digital assets.

The market’s reaction underscores that crypto traders respond not only to economic indicators but also to diplomatic and political developments between leading global powers.

Leveraged Trading Risks in a Volatile Crypto Market

Margin trading carries significant risk, especially amid rapid market movements. The events of May 11 highlighted how a volatile crypto market can cause major losses for aggressive traders.

Key outcomes for leveraged traders:

• Over 150,000 traders were forced to close positions due to margin calls
• Total liquidations exceeded $450 million across major crypto exchanges
• Nearly one-third of the amount came from Ethereum trades
• Both long and short positions were liquidated
• The highest losses occurred among traders using high leverage

Cryptocurrency Volatility: Triggers and Trends

Political headlines and sudden diplomatic shifts remain among the strongest triggers of cryptocurrency price volatility. Rapid price swings can occur within hours, leading to record-high liquidation volumes.

Volatility in action:

1. Sharp price movements within hours
2. Political news has immediate market impact
3. Liquidation volumes spike during trend reversals
4. High-leverage strategies result in maximum losses

Bitcoin and Ethereum Remain Crypto Market Barometers

Bitcoin and Ethereum continue to serve as key indicators of market sentiment. Their sharp response to geopolitical events proves that external political signals can influence the direction of the entire crypto sector.

Amid ongoing US-China negotiations and elevated volatility, cryptocurrencies maintain their position as some of the most discussed financial instruments of 2025.