Bitcoin soared past $100,000 for the first time since February. The rally followed a surprise trade deal announcement between the U.S. and the U.K. President Trump unveiled what he called a “breakthrough” agreement aimed at boosting U.S. agricultural exports. Stocks responded quickly, with the Dow rising over 500 points. Nasdaq and S&P 500 also posted strong gains.
This trade deal is the first signed under Trump’s renewed tariff strategy. Investors are interpreting it as a signal that trade wars may cool off, at least for now. Bitcoin’s price shot up nearly 5% after the announcement. Market watchers said it’s a strong sign of crypto’s growing role as a hedge. For now, Trump’s pivot toward dealmaking is giving both cryptos and stocks fresh momentum.
Bitcoin and Cryptos Outshine Traditional Assets
Bitcoin’s rise comes as other cryptos also catch fire. Ethereum jumped 13%. Solana’s token gained 9%, and Dogecoin spiked 11%. Since Trump rolled out his April tariff wave, Bitcoin is up over 16%, easily beating gold and the S&P 500. Investors are fleeing uncertain traditional markets and turning to digital assets.
Antoni Trenchev of Nexo says Bitcoin is proving its “bouncebackability.” Just weeks ago, it was trading near $74,000. Now, it’s retaken a key psychological level. The broader message is clear: in times of volatility, crypto stands tall. With trade policy still evolving, the uncertainty may push more investors toward decentralized assets.
Trade Deal With U.K. Opens the Door—But Risks Remain
Despite the headlines, the U.S.-U.K. trade deal is not a clean break from tariffs. The U.K. still faces a 10% blanket tariff on its exports. Meanwhile, the U.S. will cut auto tariffs to 10% and remove steel duties. British Prime Minister Keir Starmer hailed the agreement, while Trump claimed it’s a win for U.S. farmers.
However, not everyone’s convinced. Bank of England Governor Andrew Bailey warned that uncertainty hasn’t gone away. The U.K., he said, remains exposed to global tariff impacts. The deal might spark more agreements, but for now, risk still looms. Markets will be watching how other trade talks unfold—especially with the EU and China.
More Trade Deals Coming? Markets Hope So
Trump has hinted that more trade deals are on the way. Talks with China are scheduled, and U.S. Treasury officials are preparing to meet their Chinese counterparts. Trump even suggested lowering the sky-high 145% China tariffs if negotiations go well. That would be a major shift.
For now, though, markets are betting on optimism. Trump told investors to “go out and buy stock,” claiming the trade deal and a new tax bill make now the perfect time. Whether that proves true depends on follow-through. A failed China deal could easily erase the recent gains. But for now, Wall Street is betting Trump’s deal-first approach is here to stay.
Trade Deal Momentum Meets Central Bank Skepticism
While Trump pushes deals, central banks are urging caution. The U.K.’s Bank of England cut interest rates by 25 basis points, but the decision was divided. Bailey said the trade deal is welcome, but far from enough to clear the fog. In fact, the word “uncertainty” appeared 41 times in the bank’s latest report.
Rate decisions in both the U.K. and U.S. show that monetary policymakers are still worried. Inflation, employment, and geopolitical risks remain in play. Rising tensions in Asia and unclear global trade rules continue to pressure markets. That’s part of why Bitcoin is surging—investors are looking for assets beyond the reach of politics.