Bitcoin rose alongside Asian stocks after reports that the U.S. and China plan to hold trade talks, Bloomberg reports .

The world's largest digital asset gained over 3% to top $97,500 on Wednesday morning, but has since pared its gains. At the time of writing, BTC is trading around $97,000 after climbing to an intraday peak of $97,840.

The morning rally followed news that U.S. Treasury Secretary Scott Bessent and Trade Representative Jamison Greer will meet with the Chinese government this week in Switzerland, raising hopes of a deal between the world's two largest economies and an easing of trade tensions.

Meanwhile, India said early Wednesday it had carried out precision military strikes on Pakistan, which responded by reporting the downing of five Indian aircraft.

“We are seeing renewed interest in buying Bitcoin on the upside as the market is optimistic about a positive outcome to the weekend talks,” said Sean McNulty, head of Asia-Pacific derivatives at broker FalconX Ltd.

For now, traders are "completely ignoring" the conflict in Pakistan, McNulty added.

Digital asset investors will also be watching the Federal Reserve's decision, expected later Wednesday, which is expected to leave rates unchanged.

"We see broad risk appetite today, mainly due to the resumption of trade dialogue between the US and China. Global stock markets are rising, gold is retreating, and the dollar is slightly stronger. This sentiment is supported by the crypto market," said Yuan Rong Tang, a trader at QCP Capital.