In a significant development, Bitcoin exceeded $100,000 for the first time since February on Thursday. This surge followed President Donald Trump’s announcement of a trade agreement with the United Kingdom, along with plans to meet Chinese President Xi Jinping in Geneva later in the week.
The original cryptocurrency increased by 5% in the last 24 hours, reaching a peak of $101,500 on Thursday. This rise occurred as investors returned to risky assets amid economic uncertainty. The trade deal news also positively affected the broader crypto market. In the same period, Ethereum rose by 13%, Solana by 10%, and XRP by 6%.
Nicholas Roberts-Huntley, co-founder and CEO of blockchain infrastructure company Blueprint Finance, explained to Fortune that the price increase resulted from the U.S.-U.K. trade agreement and upcoming U.S.-China trade talks in Switzerland.
Although the details of the deal with the U.K. remain to be finalized, Trump stated there would be a rollback of tariffs on British automobiles, aluminum, and steel, with a 10% baseline tariff retained. In exchange, the U.K. will enhance market access for American exports, including ethanol, beef, and soft drinks.
This agreement marks the first since Trump’s strategy of threatening heavy tariffs on various imports to initiate negotiations with U.S. trading partners. On April 2, Trump announced plans for base and “reciprocal tariffs” on nearly all trading partners, a move expected to increase inflation and disrupt global supply chains. This announcement led to a market meltdown, with the S&P 500 losing 12% and Bitcoin falling 11% before the plan’s implementation on April 9.
Financial markets saw a brief recovery when Trump announced a 90-day pause on reciprocal tariffs, excluding China. Recently, stock market volatility continued as Trump engaged in trade talks with multiple foreign nations. However, Bitcoin, typically seen as a risky asset, continued to rise. Since hitting an annual low of $75,000 on April 8, Bitcoin has gained 35%.
While the U.S.-U.K. trade deal has been resolved, America’s negotiations with other countries are ongoing. Trump and his team have been in discussions with Canada, Japan, Italy, India, and others since April 2. Moreover, Trump and Xi are scheduled to meet over the weekend to address the escalating trade conflict between the two nations.
Charles Wayn, co-founder of crypto data company Galxe, indicated to Fortune that these deals bring hope for more concessions, leading to increased certainty and better market conditions.
This information was originally published on Fortune.com.
