Bitcoin Surges 5.86% to $102,644.00 as US-UK Trade Deal Eases Tariff Uncertainties

US President Donald Trump announced the first trade deal between the US and the United Kingdom since he imposed higher tariffs on imports in April. The deal, which includes a 10% tariff on goods imported from the UK to the US, is expected to raise $6 billion in external revenue. The agreement also opens $5 billion in export opportunities for US farmers, ranchers, and producers, and bolsters national security for both countries by creating an aluminum and steel trading zone and a pharmaceutical supply chain.

Following the announcement, the price of Bitcoin (BTC) surged, trading at $102,644.00, up by 5.86% over the past 24 hours. The broader digital asset market also responded positively, with the global cryptocurrency market cap reaching $3.32 trillion, up by 5.54% in the last 24 hours and 35.16% from one year ago. This rally was driven by improved market sentiment as the trade deal partially eased tariff-related uncertainties that had been weighing on the crypto market since the inception of Trump's presidency.

The trade deal, which left in place a 10% tariff on goods imported from the UK to the US, while Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to US goods, was seen as a positive step towards de-escalating the trade war. This development boosted risk-on sentiment in the market, propelling Bitcoin to levels last seen in early February, just 5% shy of its all-time high of $109,588.

The rally in Bitcoin was also supported by institutional demand, which logged in a fourth week of gains. This influx of capital from institutional investors is a positive sign for Bitcoin's long-term prospects, as it suggests growing acceptance of BTC as a strategic asset. The trade deal also had broader implications for the global economy, as it signaled a potential shift in US trade policy. US Commerce Secretary Howard Lutnick hinted at more deals with big economies in the near future, which could further boost market sentiment and drive up the price of Bitcoin.

In addition to the trade deal, there were other developments that contributed to the rally in Bitcoin. Arizona Governor Katie Hobbs signed House Bill 2749, allowing the state to claim ownership of digital assets, including cryptocurrencies, that remain unclaimed for over three years. This move follows New Hampshire’s similar pro-crypto legislation and signals growing state-level interest in digital asset adoption. The approval of these bills could set a precedent for other states, potentially driving broader adoption of cryptocurrencies.

The rally in Bitcoin was also supported by corporate demand, as several companies announced that they continued to add BTC to their portfolios. Strategy, for instance, acquired 1,895 BTC for $180.30 million, bringing its total holding to 555,450 BTC. This news follows last week’s Q1 earnings presentation, where the company revealed a new $21 billion at-the-market offering to add more BTC to its reserve. Semler Scientific also added 167 BTC, holding 3,634 BTC, and is now the fourth largest Bitcoin Treasury Company in the US. The demand from corporate companies is positive for Bitcoin as it indicates a growing acceptance of BTC as a strategic asset, boosting its legitimacy and potentially driving long-term adoption.

Looking ahead, Bitcoin bulls aim for $105,000 before reaching an all-time high. The daily chart's Relative Strength Index (RSI) reads 76, above its overbought levels of 70, indicating strong bullish momentum. However, traders should be cautious as the chances of a pullback are high due to its overbought condition. Another possibility is that the RSI remains above its overbought level of 70 and continues its upward trend. The Moving Average Convergence Divergence (MACD) indicator on the daily chart showed a bullish crossover on Thursday, giving a buy signal. However, if BTC faces a pullback, it could extend the decline to retest its next support level at $100,000.