Bitcoin retakes US$100,000 on global trade deal optimism

Bitcoin topped US$100,000 (HK$780,000) on Thursday for the first time since early February, buoyed by a wide-ranging trade agreement between the US and the UK, signaling a possible easing of US President Donald Trump’s global trade war.

By midday, bitcoin was trading at US$101,329.97, a 4.7 percent gain on the day. The world’s largest cryptocurrency has returned to positive territory for the year but remains below its all-time high of more than US$109,000 reached in January.

Ether, the cryptocurrency powering the Ethereum blockchain, surged over 14 percent to US$2,050.46, hitting its highest level since late March earlier in the day.

Trump and British Prime Minister Keir Starmer announced a “breakthrough deal” on trade that retains a 10 percent tariff on UK goods imported to the US, while Britain agreed to lower its tariffs to 1.8 percent from 5.1 percent and provide greater market access for US goods.

The agreement marks the first major trade accord since Trump reignited a global trade war after returning to the White House in January.

“The retaking of US$100,000 must go down as one of bitcoin’s more formidable feats and is a reminder that buying during peak fear — just last month bitcoin was languishing around US$74,000 — can be exceptionally lucrative,” said Antoni Trenchev, co-founder of digital asset trading platform Nexo, in an emailed comment.

“The speed of the rebound to US$100,000 amid a resumption of risk appetite sends a signal that US$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 cryptocurrency prices plummeted between February and April as traders grew anxious over Trump’s slower-than-anticipated implementation of pro-crypto reforms.

The announcement of sweeping tariffs in early April further drove investors into safe havens, leading to sharp declines in bitcoin, equities, and other riskier assets.

Other cryptocurrencies have not rebounded as strongly, with ether still 50 percent below its late 2024 highs.

Joel Kruger, market strategist at fintech company LMAX Group, cited institutional investor inflows into bitcoin exchange-traded funds, easing geopolitical tensions, and Chinese monetary stimulus measures as key factors behind bitcoin’s surge.

Reuters