Bitcoin is trading at its highest level since February, nearing and at times crossing the $100,000 mark, as optimism surrounding potential U.S. trade deals, hinted at by Donald Trump, boosted cryptocurrency markets. The digital asset’s price surge comes as investors react positively to prospects of reduced economic uncertainty stemming from international trade relations.
The flagship cryptocurrency was recently priced above $100,800, according to Coin Metrics, reflecting a gain of more than 4% over 24 hours. This ascent follows a recent period of price decline that saw Bitcoin dip below $75,000 last month.
The price movement gained momentum after Donald Trump indicated that significant trade announcements were imminent. This included hinting at a "major trade deal" with a "big" country and later confirming a "full and comprehensive" agreement with the United Kingdom, details of which were expected to be unveiled.
Alongside Bitcoin, other cryptocurrencies also rallied. Ether jumped, while tokens tied to Solana and dogecoin posted gains. Ethereum, XRP, and Shiba Inu also saw prices increase, reflecting a broader positive sentiment across the crypto market. Cardano's ADA also led market gains.
The current rally marks a significant turnaround for Bitcoin since early April. The price dropped following President Donald Trump's introduction of initial tariff policies that created volatility in global markets. Since that time, bitcoin is up about 16%.
The market's reaction to Trump's trade rhetoric highlights the sensitivity of risk assets, including cryptocurrencies, to political and economic policy announcements. Earlier actions, such as the appointment of the crypto-friendly Paul Atkins as the new Securities and Exchange Commission chair under the administration, were also seen as signaling a potentially favorable regulatory environment.
While trade deal optimism is a key driver, some market participants are also monitoring signals from the Federal Reserve regarding future monetary policy decisions.
