Bitcoin Surges 2% to $99,300 on Trade Deal Hopes, Fed Rate Decision

Bitcoin (BTC) experienced a significant rally during the ongoing session, surging past $97,000 as bullish sentiment returned to the crypto markets. This surge was fueled by the White House's announcement of a trade deal with the UK, which buoyed investor sentiment and drove BTC to its current level of around $99,500. The crypto market had been rallying since Thursday, with expectations of a major trade deal announcement. President Trump's statement on Truth Social about an impending trade deal further boosted market confidence. The deal, which is the first of many such agreements to be announced since the imposition of various tariffs on trading partners, is expected to power Bitcoin beyond $100,000 and spark a rally in both crypto and traditional markets.

Charlie Sherry, Head of Finance at an Australian crypto exchange, commented on the market sentiment, stating that just when consensus leans heavily bearish, price bottoms form, and new market structures start to emerge. While there may be psychological resistance at the $100,000 mark, it seems inevitable that Bitcoin will add another zero to its value. This sentiment is echoed by analysts who believe that a move beyond $100,000 could indicate the beginning of a new bull cycle.

The Federal Reserve's decision to keep interest rates steady between 4.25% and 4.5% following the Federal Open Market Committee (FOMC) meeting also played a role in the market's bullish sentiment. The Fed highlighted high inflation and unemployment as key factors behind its decision, and Chair Jerome Powell ruled out a pre-emptive rate cut, stating that inflation remained above acceptable levels. The Fed has kept interest rates steady since December as it evaluates the impact of Trump’s tariff policies and escalating trade tensions.

Powell also noted that negotiations with key trading partners could have a material impact on the economic outlook. He stated that the administration is beginning talks with a number of important trading partners, and that has the potential to change the picture materially. However, he also ruled out meeting with President Trump, stating that he has not asked to meet with Trump or any other US President.

Bitcoin's realized cap has also registered a notable jump, reaching $891 billion on May 7. This indicates a shift across the Bitcoin investor spectrum, with a growing conviction in Bitcoin’s long-term potential as a financial asset. With sustained accumulation from both long-term holders (LTHs) and short-term holders (STHs), the market appears to be building a solid foundation for a potentially significant price breakout. If this trend continues, it could signal the early stages of a new bull cycle for Bitcoin.

Despite the bullish sentiment, Bitcoin bulls face considerable selling pressure as they try to dismantle the resistance at $100,000. However, crypto analytics platform Santiment stated that Bitcoin wallets holding between 10 and 10,000 BTC are positive about further gains and have acquired a significant amount of BTC over the past six weeks. This indicates that there is still strong support for Bitcoin's price to continue rising.

Looking back at the previous week, BTC started on a positive note, rising 1.28% and settling at $95,002. However, it lost momentum on Tuesday and fell 0.70% to $94,342. The price encountered volatility on Wednesday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as BTC registered a marginal decline and settled at $94,155. Sentiment changed on Thursday, and BTC rallied 2.45%, surging past $96,000 and settling at $96,458. The price raced to an intraday high of $98,000 on Friday before settling at $96,939, ultimately registering an increase of 0.50%.

BTC lost momentum over the weekend as selling pressure returned. As a result, the price fell 0.98% on Saturday and 1.66% on Sunday, slipping below $95,000 and settling at $94,390. Despite the bearish weekend, BTC started the week positively, registering a marginal increase and settling at $94,773. Bullish sentiment intensified on Tuesday as the price rose over 2%, surging past $96,000 and settling at $96,845. A marginal increase on Wednesday saw BTC claim $97,000 and settle at $97,013. BTC rallied during the ongoing session, looking to break past $100,000. The flagship cryptocurrency is up over 2% and trading around $99,300.