Bitcoin maintained its position above the $100,000 threshold on Friday, supported by a wave of renewed investor enthusiasm following a recently announced trade deal between the United States and the United Kingdom.
The cryptocurrency, which leads the market, fluctuated around $102,000 as traders responded positively to indications of a reduction in global trade tensions.
The upward trend was sparked after US President Donald Trump and UK Prime Minister Keir Starmer unveiled what they termed a “breakthrough deal” on Thursday. The agreement keeps a 10% tariff on British goods entering the US while significantly lowering UK tariffs on American imports from 5.1% to just 1.8%.
Market analysts viewed this development as a potential indication that Trump might be willing to reverse some of the stringent trade policies that have unsettled global markets since his return to the presidency earlier this year.
JUST IN: $BTC reclaims $100K.
Will it test $105K by this week? pic.twitter.com/l8LnUyKbyA
— CoinGecko (@coingecko) May 8, 2025
Trump’s Trade Softening Boosts Bitcoin, ETH, XRP, and SOL
This marks the first formal agreement since Trump initiated tariffs in February, which many had described as a fresh phase in trade tensions. However, a recent 90-day halt on new tariffs by the administration has instilled optimism among investors eager for further agreements.
Bitcoin’s surge was mirrored by other cryptocurrencies, with Ether increasing by 16.4% to $2,218, while XRP rose by 6.3% to $2.31. Solana also experienced a 7.3% jump, with prices reaching $162.07. Analysts attributed this broader rally in the crypto market to favorable macroeconomic conditions and a rise in institutional participation.
Bitcoin Continues Bullish Trend Despite Ongoing Geopolitical Risks
Geoffrey Kendrick from Standard Chartered commented that risk sentiment is no longer the primary driver for Bitcoin’s value. “It is now all about flows, and flows are coming in many forms,” he noted, highlighting significant investments from institutional players as well as increased inflows into spot Bitcoin ETFs.
Kendrick further mentioned that his previous target of $120,000 for the second quarter may not fully account for Bitcoin’s increasing momentum.
Other financial experts pointed to the Federal Reserve’s recent decision to keep interest rates unchanged as a factor prompting investors to pursue alternative assets in a volatile economic environment, with Bitcoin emerging as a particularly appealing option.
James Toledano, chief operating officer of Unity Wallet, emphasized that the US-UK trade agreement has bolstered confidence throughout global markets. “The sentiment is that if President Trump is making a deal with the UK, similar agreements could follow with other nations soon,” he said. “This development certainly provides us with grounds for optimism, fostering a risk-on sentiment that benefits assets like Bitcoin.”
Despite the positive outlook, several risks persist. Ongoing geopolitical tensions, particularly a recent escalation between India and Pakistan, could still impact market sentiment.
For the time being, Bitcoin’s resurgence to six figures has rekindled bullish sentiment across the broader digital asset landscape.
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