Bitcoin retakes 100,000-dollar on global trade deal optimism
Technology
Bitcoin retakes 100,000-dollar on global trade deal optimism
NEW YORK/LONDON (Reuters) - Bitcoin topped $100,000 on Thursday for the first time since early February, bolstered by a wide-ranging deal between the United States and the United Kingdom in a sign that perhaps US President Donald Trump's trade war with the rest of the world is easing.
By midday, bitcoin was trading at $101,329.97, a 4.7% gain on the day. The world's biggest cryptocurrency has clawed its way back into positive territory for the year, although it remains below the record high of more than $109,000 reached in January.
Ether, the cryptocurrency for the Ethereum blockchain, surged more than 14% to $2,050.46 after earlier hitting its highest since late March.
Trump and British Prime Minister Keir Starmer on Thursday announced a "breakthrough deal" on trade that leaves in place a 10% tariff on UK goods imported into the U.S., while Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to U.S. goods.
The agreement is the first since Trump triggered a global trade war with a barrage of tariffs on trading partners following his return to the White House in January.
"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 speed of the rebound to $100,000 amid a resumption of risk appetite sends a signal that $109,000 and above are in its sights, as buying from long-term holders -- those holding for at least 155 days -- more than offsets selling by short-term holders."
Bitcoin and other crypto prices fell sharply between February and April, as traders fretted about Trump pushing through pro-crypto reforms more slowly than anticipated.
The president's announcement of widespread tariffs in early April triggered a dash into safe havens, with bitcoin and other crypto prices tumbling in tandem with stocks and other higher-risk assets.
Other cryptocurrencies have not recovered so strongly, with ether still 50% off its late 2024 highs.
Joel Kruger, market strategist at fintech company LMAX Group, said institutional investor inflows into bitcoin exchange-traded funds, easing geopolitical tensions and Chinese measures to boost monetary stimulus had contributed to bitcoin's surge.
