Source Credit : Reuters
Bitcoin surpassed the $100,000 mark on Thursday, marking its highest value since early February. This surge was attributed to a comprehensive agreement between the United States and the United Kingdom, indicating a potential easing of the trade tensions initiated by former U.S. President Donald Trump.
As of midday, Bitcoin was trading at $101,329.97, marking a 4.7% increase for the day. The world's largest cryptocurrency has successfully rebounded into positive territory for the year, although it still falls short of the record high of over $109,000 achieved in January.
On Thursday, President Trump and British Prime Minister Keir Starmer announced a significant trade agreement. The deal includes a 10% tariff on UK goods imported into the U.S., while Britain has agreed to reduce its tariffs from 5.1% to 1.8% and grant increased access to U.S. goods. This agreement marks a breakthrough in trade relations between the two countries, fostering greater economic cooperation and mutual benefit.
"The retaking of $100,000 must go down as one of bitcoin's more formidable feats and is a reminder that buying peak fear - just last month bitcoin was languishing around $74,000 - can be exceptionally lucrative," Antoni Trenchev, co-founder of digital asset trading platform Nexo, said in an emailed comment.
The rapid rebound to $100,000, driven by a resurgence in risk appetite, indicates that the price is poised to surpass $109,000 and beyond. Long-term holders, who have held their positions for at least 155 days, are driving the buying momentum, outweighing the selling pressure from short-term holders. This trend suggests a bullish outlook for the price of the asset.
The prices of Bitcoin and other cryptocurrencies experienced a significant decline from February to April. This was due to concerns among traders about the delay in President Trump's implementation of pro-crypto reforms. The announcement of widespread tariffs in early April led to a rush towards safe-haven assets, causing Bitcoin and other cryptocurrency prices to plummet alongside stocks and other high-risk assets.
Joel Kruger, a market strategist at the fintech company LMAX Group, noted that the recent surge in Bitcoin can be attributed to several key factors. Institutional investor inflows into Bitcoin exchange-traded funds, along with easing geopolitical tensions and Chinese measures to boost monetary stimulus, have all played a significant role in driving up the value of Bitcoin.
