Bitcoin Surges 2.2% to $99,200 on Trump's UK Trade Deal Hype

Bitcoin's price surged towards the $100,000 mark on Wednesday, driven by anticipation surrounding a significant international trade deal announced by US President Donald Trump. The deal, reported to be with the United Kingdom, is set to be formally unveiled at the White House on Thursday. This news has sparked a wave of optimism among cryptocurrency investors, with Bitcoin's price rising from $97,100 to $99,200 following Trump's initial post on his Truth Social page.

Trump's announcement on May 7 hinted at a "big trade deal" with a "highly respected" nation, which sources later confirmed to be the UK. This development has been cited by some Bitcoin observers as a key factor driving the cryptocurrency's recent price increase. Neil Jacobs, co-founder of FOMO21, suggested that Trump's message was likely the main catalyst for Bitcoin's upward trajectory.

Bitcoin's latest high of $109,000 was reached on January 20, just hours after Trump's inauguration for his second term. The current surge in optimism has traders speculating whether this new wave of positive sentiment will push the cryptocurrency to even higher levels. The market sentiment, as indicated by the Crypto & Fear Index, has shifted to "Greed" with a reading of 65, reflecting a high level of investor optimism and willingness to take on more risk.

Trump's tweet about the trade deal came just hours after the US Federal Reserve decided to keep interest rates unchanged, maintaining the range between 4.25% and 4.50%. Despite Trump's previous calls for rate cuts, the Fed's decision did not deter Bitcoin's upward momentum. This suggests that investors may be placing more importance on trade news and international politics than on central bank policies, at least in the short term.

Historically, Bitcoin's price has been influenced by political events and trade tensions. For instance, on February 1, Bitcoin surpassed $100,000 following Trump's announcement of new import tariffs on nations such as China, Canada, and Mexico. As political developments continue to unfold, investors are closely monitoring the news and its potential impact on Bitcoin's trajectory.