Bitcoin Surges 10% to $99,381.2 on US-China Trade Deal Hopes

Bitcoin's price surged on Thursday, nearing the $100,000 mark amid optimism surrounding a potential trade deal between the United States and China. The cryptocurrency briefly touched $99,381.2, marking its highest level in about three months. This rally was driven by U.S. President Donald Trump's announcement of a "major" trade deal, which boosted market sentiment and pushed Bitcoin closer to the psychologically significant $100,000 level.

The momentum in Bitcoin's price was not isolated but part of a broader trend in the cryptocurrency market. The overall market sentiment improved as risk appetite increased, driven by hopes of a deescalation in U.S. tariffs and potential trade agreements with other major economies. This optimism helped Bitcoin return to positive territory for the year, with steady capital flows into spot exchange-traded funds reflecting increased institutional appetite.

Bitcoin's gains came despite concerns over a slowing U.S. economy and trade-related disruptions raised by the Federal Reserve. The cryptocurrency's price action was characterized by strong momentum, with it trading above key levels and approaching the $100,000 mark. The immediate resistance level was identified near $98,250, with Bitcoin surging past this level and showing a clear attempt to reclaim short-term momentum.

While tariffs and disruptions in global trade have a limited direct impact on crypto markets, fluctuations in sentiment significantly influence the sector due to its largely speculative nature. The potential trade deal between the U.S. and China, along with Trump's indication of further agreements with major economies, provided a significant boost to market sentiment. This optimism drove Bitcoin's price higher, with the cryptocurrency's dominance in the market evident as it held a market cap of nearly $1.96 trillion, far outpacing other major cryptocurrencies.

Broader crypto prices also advanced on Thursday, tracking gains in Bitcoin. Ether, the world's second-largest cryptocurrency, rose 3.7% to $1,896.91, while other altcoins like XRP, Solana, Cardano, Polygon, and Dogecoin also saw gains. The overall market cap of cryptocurrencies topped $3 trillion, with Bitcoin leading the charge and holding a significant portion of the market cap.

Analysts attributed the surge in Bitcoin's price to the positive market sentiment stemming from the potential trade deal. The optimism surrounding the trade talks between the two economic superpowers provided a boost to risk assets, including cryptocurrencies. The Federal Reserve's decision to maintain its current monetary policy also contributed to the positive market sentiment, providing a stable backdrop for risk assets to thrive.