Bitcoin has surged to its highest level since January, nearing the symbolic $100,000 mark, as markets react to U.S. President Donald Trump’s announcement of an upcoming “major trade deal” with a key international ally.
On May 8, Bitcoin traded at $98,933, gaining 2.6% in 24 hours, according to CoinMarketCap data. The move was driven by growing optimism after Trump revealed he would host a press conference in the Oval Office to announce a new agreement with a “big” and “highly respected” country—one he called the “first of many.”
Markets Anticipate US-UK Agreement
While Trump did not name the country, multiple media outlets, including The New York Times, reported the deal is expected to involve the United Kingdom. Sources familiar with the negotiations say the pact may focus on technology, AI cooperation, and the removal of some tariffs on British goods such as steel and cars.
The update was welcomed by investors as a potential de-escalation of global trade tensions, which have rattled financial markets since April. Trump’s decision to implement tariffs as high as 145% on Chinese imports had previously sparked a selloff across equities, commodities, and cryptocurrencies—including Bitcoin.
Bitcoin’s Path Back From the Dip
Bitcoin last hit its all-time high of $109,000 on January 20, just days before Trump’s second inauguration. However, the cryptocurrency plunged to $74,500 in April following escalating U.S.-China tariff exchanges. The current rebound has been steady and broad-based, supported by ETF inflows, a softer U.S. dollar, and improved investor sentiment.
Now, Bitcoin is up more than 30% from its April lows, with traders eyeing $100K as the next psychological barrier. Renewed capital from institutions has poured into the market, and interest in digital assets has been buoyed by the prospect of more global trade clarity.
Fed Stability and China Talks Fuel Momentum
Markets also reacted positively to the Federal Reserve’s May 7 decision to hold interest rates at 4.25%–4.50%, pausing further tightening amid what Fed Chair Jerome Powell described as “heightened uncertainty” from the Trump administration’s economic policy.
“My gut tells me that uncertainty for the path of the economy is extremely elevated,” Powell said, adding that inflation remains above target but the labor market is stable enough to delay further action.
In another related development, Treasury Secretary Scott Bessent is preparing to meet with top Chinese officials in Switzerland this weekend. This marks the first formal engagement between the U.S. and China since reciprocal tariffs were implemented in April, a move widely blamed for Bitcoin’s short-term weakness last month.
Can Bitcoin Break $100K?
Technical indicators show strong support below $95,000, and traders believe a clean break above $100,000 could trigger a wave of momentum buying, potentially testing resistance near $105K–$110K.
Market analysts remain cautiously bullish, citing macro stabilization, ongoing ETF demand, and growing retail re-entry as key drivers.
With political and monetary uncertainty still looming, Bitcoin’s ascent may not be linear—but for now, the $100K milestone is well within sight.
