Bitcoin Surges 20% to $100,000 on Trade Deal Hopes, Fed Rates

Bitcoin (BTC) reached a significant milestone, hitting $100,000 on major exchanges for the first time since February. This surge was driven by the Federal Reserve's stable interest rates and President Trump's announcement of positive developments in tariff deals with multiple countries. The breakthrough in Bitcoin's value was further fueled by the news that Trump had signed a comprehensive trade deal with the UK, marking the first agreement since his administration's sweeping tariff program began last month. This deal is expected to reduce US-UK duties on steel and autos, thereby easing supply-chain inflation fears that have affected risk assets since the tariff shock.

Trump's announcement of the trade deal with the UK and the anticipation of several other deals in the final stages contributed to a risk-on sentiment in the market. This positive sentiment spilled over into the crypto market, leading to more than $260 million in short positions being liquidated across derivatives venues in the past 24 hours. Traders are now eyeing $105,000 as the next resistance level. If Trump's deals materialize without surprises, bulls argue that the path to $120,000 could open quickly.

The stable interest rates set by the Federal Reserve and the positive developments in trade deals have created a favorable environment for Bitcoin. The reduction in US-UK duties on steel and autos is expected to ease supply-chain inflation fears, which have been a significant concern for risk assets. This easing of inflation fears has contributed to the risk-on sentiment in the market, leading to a surge in Bitcoin's value. The liquidation of short positions in the crypto market further indicates the bullish sentiment among traders.

Traders are now looking ahead to the next resistance level at $105,000. If the trade deals announced by Trump materialize without any unexpected issues, there is a strong possibility that Bitcoin's value could continue to rise, potentially reaching $120,000. The positive developments in trade deals and the stable interest rates have created a favorable environment for Bitcoin, and traders are optimistic about its future prospects.