Bitcoin approaches the $100,000 mark as President Trump plans to announce a trade deal with the UK. The anticipated news has spurred optimism among analysts and investors, attributing Bitcoin’s rise in value to the upcoming announcement. Current data shows a notable increase in Bitcoin’s price, with positions liquidated signalling a bullish market sentiment. However, the article advises caution as all investments involve risk.
Bitcoin is inching closer to the $100,000 mark as important news brews in the political and economic arena. President Donald Trump has announced plans to reveal a major trade deal with the UK — a move that many believe could impact the crypto market. On May 7, Trump teased the deal on his Truth Social account, signalling a significant announcement to come on May 8. The New York Times has since identified the UK as the nation in question, citing various unnamed sources connected to the plans.
At the time of Trump’s post, Bitcoin was hovering around $97,759. However, prices quickly escalated, pushing Bitcoin to about $99,140 shortly after the announcement, as reported by CoinMarketCap. Many analysts and investors are attributing this price spike to the anticipation surrounding the trade deal with the UK.
Charlie Sherry, the head of finance at Australian exchange BTC Markets, remarked in a message to Cointelegraph that while others anticipated a downturn, Bitcoin’s price trajectory was contrary, hinting at a possible FOMO (fear of missing out) effect. He speculated the upcoming trade deal is already being factored into Bitcoin’s current pricing.
Notably, Sherry mentioned that although there might be some psychological resistance once the currency reaches the $100,000 threshold, it seems almost unavoidable that Bitcoin could soon be marked with another zero. Similarly, FOMO21 co-founder Neil Jacobs has voiced his opinion on social media, asserting that a significant part of the current Bitcoin rally stems from Trump’s announcement.
Crypto entrepreneur Anthony Pompliano added a bullish outlook, indicating that the anticipated trade deal is likely steering Bitcoin toward new all-time highs, possibly by 2025. Bitcoin’s all-time high of approximately $109,000 was recorded on January 20, shortly before Trump took office.
In a related note, Sahib Anandsongvit, the CEO of Pandora, expressed astonishment at Bitcoin’s rapid price increase, considering it was trading at $80,000 only weeks ago. Indeed, Bitcoin last saw the $80,000 mark on April 11, before breaking through to $90,000 a mere eleven days later.
Interestingly, Trump’s trade deal revelation coincided with the US Federal Reserve’s announcement to hold interest rates steady at 4.25% to 4.50%. This decision comes amid Trump’s insistence for lower rates. Historically, Bitcoin has fluctuated significantly in response to such economic factors; it last reached the $100,000 mark on February 1, when Trump proposed tariffs against China, Canada, and Mexico.
The excitement around Bitcoin seems to be palpable within the market as the Crypto & Fear Index scores a notably optimistic “Greed” level of 65. The latest data indicates that Bitcoin’s recent increase of 3% has led to around $96 million in short positions being liquidated, an event that highlights the volatility yet interest in the crypto sphere today.
It’s crucial to note that this article does not serve as investment advice. Every trading decision carries risks, and it’s advisable for readers to do their own research before committing to any investment decisions.
