Bitcoin Surges 101% to $101,707 on US-UK Trade Deal, Regulatory Support

Bitcoin (BTC) surged to $101,707, driven by strong fundamentals in the regulatory and traditional finance sectors. This rally comes as the US President announced a potential trade deal with the UK, which could lead to the removal of a 10% tariff on all imports. The market responded positively to this news, with the Dow gaining 500 points and the S&P 500 rising by 1.47%.

President Trump's frequent social media posts and public comments from White House officials have indicated ongoing trade negotiations with various countries, including China. The US is scheduled to meet with Chinese officials in Switzerland on May 10. The significance of Bitcoin's return to six-figure territory after trading below this level since February was not lost on investors. Analysts are closely monitoring whether Bitcoin can hold the $100,000 level as support.

While the initial surge through the $100,000 level was driven by $241 million in futures market liquidations, the political and investment environment surrounding Bitcoin has improved significantly since the last time BTC traded above six figures. In the past week, two US states have legalized the establishment of strategic Bitcoin reserves. On May 8, Missouri's legislature sent Bill 594, which would end all capital gains taxes, to Governor Mike Kehoe. On May 7, the US Office of the Comptroller of the Currency (OCC) confirmed that banks within its jurisdiction can responsibly trade crypto on behalf of their customers and outsource crypto and custodial activities to trusted third parties.

In late March, the FDIC issued guidance allowing banks to hold crypto assets and offer various goods and services to clients. This growing legislative and regulatory support for Bitcoin and other cryptocurrencies has been accompanied by soaring inflows to spot Bitcoin ETFs and increasing buying and BTC treasury from US-based and international publicly listed companies. This environment has accelerated the mass adoption of Bitcoin, contributing to its recent price surge.