Bitcoin enthusiasts are eagerly anticipating a significant milestone as the cryptocurrency approaches the critical $100,000 mark. This excitement follows a recent announcement from former President Donald Trump, who indicated that a major trade deal with the United Kingdom would be revealed on May 8. Such developments have sparked speculation about Bitcoin’s value, with many investors believing it could soon reach a new all-time high.
Trump’s communication via Truth Social on May 7 explicitly mentioned a “major trade deal” with a “big, and highly respected, country”. Reports from The New York Times later confirmed that this country is the UK, citing individuals familiar with the situation. Just prior to this announcement, Bitcoin was trading at approximately $97,759, but it quickly climbed closer to the psychological barrier of $100,000, peaking at $99,140, according to CoinMarketCap data.
Bitcoin’s Rally
The bullish sentiment surrounding Bitcoin appears to be heavily influenced by the anticipated trade deal. FOMO21 co-founder Neil Jacobs stated that the recent surge towards $100,000 is predominantly a reaction to Trump’s forthcoming announcement. Crypto entrepreneur Anthony Pompliano added that the prospect of a trade agreement increases the likelihood of Bitcoin hitting new all-time highs in 2025.
For context, Bitcoin reached its previous all-time high of $109,000 on January 20, shortly before Trump’s inauguration. This correlation between political activities and Bitcoin price movements further emphasizes the market’s sensitivity to external factors.
Moreover, the recent spike in Bitcoin’s price has led to liquidations of nearly $96 million in short positions over a 24-hour period, as reported by CoinGlass data. The current bullish market sentiment is corroborated by the Crypto & Fear Index, which is indicating a “Greed” score of 65.
It’s worth noting that this price rally follows a backdrop of steady interest rates maintained by the US Federal Reserve, which recently announced a range of 4.25% to 4.50% in response to calls for action from Trump. Interestingly, Bitcoin has not been able to breach the $100,000 threshold since February 1, primarily attributed to Trump’s previously proposed import tariffs on China, Canada, and Mexico.
As attention continues to focus on both Bitcoin and the implications of the upcoming trade deal, investors are advised to proceed with caution. As always, market conditions are subject to rapid change, and each investment carries inherent risks. Conducting thorough research and staying informed remain essential strategies for potential investors.
This article does not constitute investment advice. Readers should perform their own due diligence before making financial decisions.
