Bitcoin surpassed the $100,000 mark on Thursday, hitting $101,329.97 for the first time since February, driven by optimism following a significant trade agreement between the U.S. and the U.K.
This deal is seen as a potential easing of global trade tensions, particularly under President Donald Trump’s leadership. Bitcoin’s recent surge, a 4.7% increase on the day, signals a recovery for the cryptocurrency after a volatile spring, bringing it back into positive territory for the year.
Read more: Bitcoin Outshines Gold As Americans Turn To Crypto Amid Trade Tensions
Ether, the second-largest cryptocurrency tied to Ethereum, also experienced strong growth, climbing more than 14% to $2,050.46, its highest point since March. The rally followed the announcement of a “breakthrough deal” between the U.S. and the U.K.
Under the agreement, the U.S. will maintain a 10% tariff on U.K. goods, while the U.K. will lower its tariffs from 5.1% to 1.8%, opening its market further to American products. This deal is seen as a significant diplomatic step since Trump’s return to the White House, which had previously reignited trade tensions.
Antoni Trenchev, co-founder of Nexo, a crypto trading platform, highlighted that the return to the $100,000 mark is a significant achievement for bitcoin, noting that the recent rally reflects the potential benefits of buying into “peak fear,” as bitcoin had been as low as $74,000 just last month.
Long-term holders of bitcoin have been accumulating the asset, balancing the profit-taking by short-term investors. Trenchev also indicated that a retest of the previous $109,000 peak could be on the horizon, with the recent market rebound showing resilience.
In addition to the trade deal, bitcoin’s recovery is supported by several macroeconomic factors, including President Trump’s listing of digital assets as “strategic reserve tokens,” signaling potential future integration of cryptocurrencies into the financial system.
Bitcoin has benefited from institutional investments in exchange-traded funds (ETFs) and a return of positive risk sentiment. Although bitcoin has gained nearly 20% since late April, other cryptocurrencies like ether are lagging, with ether still more than 50% below its late-2024 highs. Analysts are now closely watching whether bitcoin can maintain its momentum and potentially break its previous record.
