Bitcoin rose on Thursday, nearing the key mark of $100,000, as risk appetite was bolstered by hopes for a de-escalation of President Donald Trump’s tariff agenda following his statement about a major trade deal.
The world’s largest cryptocurrency continued strong growth from the previous session, which was driven by confirmation from the U.S. and China that some trade negotiations will take place this week.
This dynamic also helped Bitcoin overcome concerns about a slowing U.S. economy and trade-related disruptions that the Federal Reserve has warned about.
Bitcoin rose by 2.6% to $98,868.6 at 09:28 Moscow time and peaked at $99,381.2.
Bitcoin is rising on hopes of a trade deal.
The latest phase of Bitcoin's rise occurred simultaneously with broader risk-oriented markets after Trump stated he would announce a "major" trade deal on Thursday.
The New York Times report indicates that a deal will be made with the United Kingdom — a country that is not subject to Trump’s retaliatory tariffs and has a trade deficit with the United States.
However, Trump stated that the trade deal would be "the first of many," raising hopes that the U.S. will reach agreements with several other major economies such as Japan and Europe. Such a move could mitigate the economic fallout from Trump's tariff agenda.
U.S. and Chinese officials are also set to hold talks later this week on trade and other economic issues. However, the likelihood of a U.S.-China trade deal seems low, especially considering that both Washington and Beijing maintain tough rhetoric regarding their fierce trade war.
Bitcoin at $100,000 in focus as sentiment improves.
Although tariffs and disruptions in global trade have limited direct impact on the crypto markets, fluctuations in sentiment heavily influence the sector, given its largely speculative nature.
Some recent improvements in risk appetite have helped Bitcoin return to positive territory this year, with all attention focused on whether the cryptocurrency can reclaim the desired level of $100,000 — last seen about three months ago.
Bitcoin has also been supported by stable capital flows into spot exchange-traded funds, reflecting increased institutional appetite.
Cryptocurrency prices today: altcoins rise alongside Bitcoin.
Broader cryptocurrency prices rose on Thursday, tracking Bitcoin's rise as risk appetite improved. But most altcoins significantly lagged behind Bitcoin last month.
The second-largest cryptocurrency in the world, Ethereum, rose by 3.7% to $1,896.91, while XRP climbed by 2.1% to $2.1769.
Solana and Cardano gained over 3%, while Polygon rose by 4.3%.
Dogecoin rose by 4.8%, while $TRUMP surged by 10%.
