Crypto Markets Surge 2.6% as Trump's Trade Deal Boosts Bitcoin to $98,933

Crypto markets have surged past the $3 trillion mark, driven by President Donald Trump's announcement of a potential major trade deal. This development has sent digital assets soaring, with Bitcoin (BTC) leading the charge. On May 8, Bitcoin climbed to $98,933, marking a 2.6% increase in just 24 hours. This surge followed Trump's announcement on Truth Social, where he hinted at a significant trade agreement with a "big" and "highly respected" country, widely speculated to be the United Kingdom. The potential easing of global trade pressures has been welcomed by traders, who have been concerned about tariffs and their impact on markets.

Since returning to office, President Trump has reignited his tariff strategy, announcing steep levies on dozens of countries in early April. The move sent shockwaves through global trade networks, prompting urgent negotiations with U.S. allies and rivals alike. A baseline 10% global tariff now looms, while “reciprocal” tariffs of up to 25% target imports such as steel, aluminum, and automobiles. One country appears to have made early headway: the UK. With Prime Minister Keir Starmer confirming a joint announcement on tariff relief later today, London has positioned itself as one of the first movers in Trump’s new trade regime.

Digital assets are fast becoming responsive instruments in the global economic narrative. Bitcoin [BTC], Ethereum [ETH], and several altcoins rallied on news of potential tariff rollbacks, mirroring traditional market behavior tied to geopolitical signals. As institutional players integrate crypto into portfolios, the space is reacting more sharply to macroeconomic shifts, including trade realignments and cross-border financial flows. The surge shows crypto’s evolving function: not just as a hedge against inflation or fiat instability, but as a forward-looking gauge of diplomatic direction. Tariff easing, particularly among large economies, signals risk-on sentiment—pushing capital into volatile, high-reward markets like crypto.

With the UK deal imminent, attention shifts to other bilateral talks. Washington is reportedly close to finalizing trade pacts with India and Israel. Further discussions are in progress with Japan, South Korea, and Vietnam. These fast-tracked deals are part of Trump’s broader push to rewire the global trading order. Meanwhile, relations with China remain strained. Both countries are preparing for high-level talks in Switzerland this week, following tit-for-tat tariffs reaching up to 145%. The outcome of these negotiations could further shape investor sentiment — and, by extension, crypto markets — in the months ahead.

In addition to the trade deal, other developments have contributed to the positive momentum in the crypto market. Treasury Secretary Scott Bessent is scheduled to meet with Chinese top officials in Switzerland, marking the first formal attempt to ease the tariffs stalemate between the U.S. and China. This meeting is significant as it could help stabilize U.S.-China relations, which have been tense following mutual tariff hikes in April. The Federal Reserve's decision to hold interest rates between 4.25% and 4.50% has also provided some relief to the markets, despite Fed Chair Jerome Powell citing "heightened uncertainty" due to Trump's trade policy. Powell emphasized the economy's resilience and low unemployment as reasons to hold off on further tightening, while acknowledging that inflation remains above target.

With these macro conditions stabilizing, the cryptocurrency market has seen a significant boost. The total market capitalization reaching above $3 trillion has wiped out 71% of short positions, indicating a strong bullish sentiment. Bitcoin's recent recovery has been further supported by other macro tailwinds, including the Federal Reserve's decision to hold interest rates and the potential easing of trade tensions. As a result, a break above $100,000 for Bitcoin now appears achievable in the coming days, with bulls closely watching as the asset tests a key psychological level. The market's green trend on Thursday, with Bitcoin leading the rally, underscores the positive impact of these developments on the overall cryptocurrency landscape.