Bitcoin breaks back above $100,000: market optimism returns on Trump trade tease
Pranjal Chandra | May 08, 2025, 23:43 IST
Bitcoin breaks back above $100,000: market optimism returns on Trump trade tease
( Image credit : TIL Creatives )
Bitcoin crosses $100,000 after a long time. This happened because of renewed investor confidence. Also, there is improvement in global trade sentiment. Donald Trump's announcement of a U.S.-UK trade deal helped. Other cryptocurrencies like Ether and Solana also saw gains. The stock market also performed well. Analysts say the next test for Bitcoin is at $109,350.
Bitcoin surged past the $100,000 mark Thursday for the first time since February, marking a significant turnaround for the world’s most valuable cryptocurrency amid renewed investor confidence and improving global trade sentiment.
The digital asset rose nearly 5% to trade at $100,881.90, according to Coin Metrics, driven by overnight momentum following President Donald Trump’s teaser about a forthcoming U.S.-UK trade deal. As more details were unveiled Thursday morning, bitcoin continued its rally, with broader markets also climbing in tandem.
Market enthusiasm kicked off late Wednesday after President Trump signaled progress on a trade agreement with the United Kingdom. Though the outline presented Thursday retains some tariffs, investor sentiment leaned bullish and bitcoin responded swiftly.
“Bitcoin has not only reclaimed $100,000 for the first time in three months,” said Antoni Trenchev, co-founder of crypto lender Nexo, “but it’s also reaffirmed its status as the ultimate bouncebackability asset as the prospects for U.S. trade deals brighten.”
The bounce is especially notable as it follows a 16% surge in bitcoin since early April, when Trump’s tariff policy initially rattled financial markets and sent risk assets into a tailspin.
Bitcoin’s rebound places it well ahead of traditional safe-haven assets. Over the past month, gold is up around 6%, and the S&P 500 has only edged slightly higher, highlighting bitcoin’s growing role as a refuge in times of geopolitical and economic stress.
“Bitcoin remains buttressed by a pro-crypto Trump administration along with hungry buying from spot-ETF investors,” Trenchev noted. “Its outperformance versus U.S. equity benchmarks in 2025 highlights its resilience and evolving safe haven status.”
That resilience may soon be tested again, however, as macroeconomic volatility looms. Traders remain wary of unresolved Federal Reserve policy direction, with rate cuts seemingly on pause amid concerns about both inflation and unemployment.
While optimism surrounds the trade deal, the global landscape remains fraught with uncertainty. Trenchev pointed to rising tensions between India and Pakistan, warning that potential escalation could inject fresh volatility into already fragile global markets.
“The crypto market thrives in chaos,” he said, “but even bitcoin has limits. In the face of full-blown conflict or a Federal Reserve misstep, it could see serious resistance.”
Bitcoin wasn’t the only digital asset to benefit from the renewed risk appetite. Ether jumped 13%, Solana’s token added 9%, and dogecoin gained 11%, as altcoins caught up to bitcoin’s performance after lagging for much of 2025.
Crypto exchange Coinbase saw its stock rise over 5%, while crypto ETF Strategy rallied nearly 7%. The Dow Jones Industrial Average, buoyed by trade optimism and strong tech earnings, climbed more than 500 points.
Although bitcoin’s return to six figures is symbolic, analysts caution that the true test lies ahead. The next technical resistance sits near its January high of $109,350, and bitcoin has spent most of the year locked in a wide post-election trading range between $70,000 and $109,000.
“Bitcoin isn’t out of the woods,” Trenchev warned. “But the retaking of $100,000 must go down as one of its more formidable feats and is a reminder that buying during peak fear just last month it hovered near $74,000 can be exceptionally lucrative.”
Whether bitcoin can sustain this upward trajectory will depend on the durability of investor confidence, macro policy clarity, and further developments on global trade and geopolitical fronts. For now, though, crypto bulls have a reason to celebrate and a milestone to defend.
The digital asset rose nearly 5% to trade at $100,881.90, according to Coin Metrics, driven by overnight momentum following President Donald Trump’s teaser about a forthcoming U.S.-UK trade deal. As more details were unveiled Thursday morning, bitcoin continued its rally, with broader markets also climbing in tandem.
Trade optimism sparks Crypto revival
“Bitcoin has not only reclaimed $100,000 for the first time in three months,” said Antoni Trenchev, co-founder of crypto lender Nexo, “but it’s also reaffirmed its status as the ultimate bouncebackability asset as the prospects for U.S. trade deals brighten.”
The bounce is especially notable as it follows a 16% surge in bitcoin since early April, when Trump’s tariff policy initially rattled financial markets and sent risk assets into a tailspin.
Bitcoin outpaces traditional safe havens
“Bitcoin remains buttressed by a pro-crypto Trump administration along with hungry buying from spot-ETF investors,” Trenchev noted. “Its outperformance versus U.S. equity benchmarks in 2025 highlights its resilience and evolving safe haven status.”
That resilience may soon be tested again, however, as macroeconomic volatility looms. Traders remain wary of unresolved Federal Reserve policy direction, with rate cuts seemingly on pause amid concerns about both inflation and unemployment.
Geopolitical tensions could drive volatility
“The crypto market thrives in chaos,” he said, “but even bitcoin has limits. In the face of full-blown conflict or a Federal Reserve misstep, it could see serious resistance.”
Altcoins join the party
Crypto exchange Coinbase saw its stock rise over 5%, while crypto ETF Strategy rallied nearly 7%. The Dow Jones Industrial Average, buoyed by trade optimism and strong tech earnings, climbed more than 500 points.
What’s next for bitcoin?
“Bitcoin isn’t out of the woods,” Trenchev warned. “But the retaking of $100,000 must go down as one of its more formidable feats and is a reminder that buying during peak fear just last month it hovered near $74,000 can be exceptionally lucrative.”