Bitcoin prices surged, nearing $99,415, as market participants reacted positively to a new U.S.-UK trade agreement and the Fed’s interest rate decision. Other leading altcoins saw gains too, contributing to a total market cap surpassing $3.10 trillion. Coinbase’s acquisition of Deribit and strong institutional buying further supported this bullish trend.
Bitcoin and various altcoins have experienced a significant price increase today, with Bitcoin itself climbing to $99,415. Investors seem to be optimistic following the announcement of the first trade deal subsequent to Donald Trump’s Liberation Day speech. There’s a buzz in the market as traders eagerly aim to push Bitcoin above the psychologically crucial $100,000 mark, eyeing a potential retest of its all-time peak of $109,300.
In terms of altcoins, several have performed remarkably well, including Pudgy Penguins (PENGU), Virtuals Protocol (VIRTUAL), Brett (BRETT), and Pepe (PEPE). Overall, these developments have catapulted the total market capitalisation of cryptocurrencies beyond $3.10 trillion, indicating robust investor interest in the digital asset landscape.
The upward trend in crypto values commenced following the Federal Reserve’s recent interest rate decision. As anticipated, the Fed maintained its rates between 4.25% and 4.50%, opting for a cautious wait-and-see stance. Analysts largely predict that a rate cut may occur later this year, with ING suggesting September as a possible timeline, while Polymarket traders don’t foresee cuts in the upcoming June or July meetings.
Despite a somewhat hawkish tone from the Fed, the crypto market reacted positively, as market responses aligned with expectations. The recent announcement of a new trade agreement between the U.S. and the United Kingdom has also fuelled optimism. The deal entails a reduction in tariffs on UK steel and automobiles, while the UK has agreed to eliminate its $800 million digital tax aimed at U.S. tech firms.
At the same time, U.S. and Chinese officials are gearing up for trade discussions in Switzerland, aiming to ease trade tensions. If tariffs are lowered between the U.S. and China, many believe this could further uplift both crypto and stock markets and create an environment favouring potential cuts from the Federal Reserve.
The rally received an extra boost following Coinbase’s acquisition of Deribit, an influential player in the options and futures market, in a whopping $2.9 billion deal. This move bolsters Coinbase’s position in an industry that already manages billions daily. Spencer Young, co-founder of Fractal Bitcoin, remarked that global derivatives trading will substantially propel Coinbase’s growth. He noted, “Deribit is the platform of choice for global traders for Bitcoin and Ethereum options.”
The bullish sentiment is bolstered by solid institutional buying, with spot Bitcoin ETFs seeing an influx of $142 million in assets just Wednesday, elevating weekly inflows to a total of $482 million. Year-to-date, these funds have accumulated over $5.7 billion in net inflows, demonstrating increasing confidence from institutional investors in the cryptocurrency market.
