In early May 2025, the global financial market was turbulent, and Bitcoin (BTC) once again became the focus of attention. Stimulated by multiple positive news, Bitcoin's price surged, not only breaking through the $100,000 mark for the first time in three months but also successfully returning its total market value above $2 trillion, surpassing global e-commerce giant Amazon and becoming the fifth largest asset in the world.
Market analysis indicates that the historic trade agreement between the US and the UK, along with President Trump’s positive signals regarding US-China trade negotiations, are short-term macro catalysts driving this round of increases. At the same time, the UK government’s posture of seeking to strengthen cooperation with the US in cryptocurrency regulation has also injected more confidence into the market. However, amidst the prevailing optimism, the market is also speculating whether a positive turn in the unresolved US-China tariff issues could completely ignite the next bull market in the cryptocurrency market.
Fifth largest asset in the world
Entering May 2025, Bitcoin has shown strong upward momentum. On the morning of May 9, Bitcoin's price peaked at $104,361, marking the first return to the critical psychological price level of $100,000 since February this year, and it is the third breakthrough since Bitcoin first reached six figures on December 5 of last year.
Accompanied by the surge in price, Bitcoin's total market value has also risen significantly. According to the latest data, Bitcoin's market value increased by nearly 4% in the past 24 hours, successfully returning to the $2 trillion mark. More significantly, Bitcoin's market value officially surpassed that of global e-commerce and cloud computing giant Amazon, ranking fifth in the global asset market value. This achievement reflects the growing influence of digital assets in the global financial system and investors' recognition of their long-term value.
Regarding Bitcoin's recent strong performance, market commentary states: 'Bitcoin has been strong in recent weeks, outperforming other digital tokens, and has been almost unaffected by geopolitical events in Asia and the Middle East, which may have impacted it in the past. With gold performing well throughout the year, there is now reason to say that Bitcoin may have proven itself as an economic hedge and a means of long-term value storage.'
The recent rise in Bitcoin's price also indicates a certain degree of 'decoupling' phenomenon from traditional tech stocks, showcasing its potential as an independent asset class and the narrative of 'digital gold.' Meanwhile, the progress in global cryptocurrency regulation and several strategic Bitcoin reserve plans may lay the foundation for long-term growth after 2025.
US-UK Trade Agreement
On the evening of May 8, 2025, US President Donald Trump held a press conference in the White House and announced that the US had reached an important trade agreement with the UK. Trump claimed that it was an incredible day for the US, as they had reached the first fair, open, and reciprocal trade agreement, which previous presidents had never cared about. He described this agreement as 'the first historic trade agreement since Liberation Day (referring to the date he previously announced tariff measures),' aimed at further opening the UK market to American products, while the UK would also eliminate many non-tariff barriers, allowing American products to pass through UK customs more quickly in the future.
The specific details of the agreement include: the high tariffs of up to 25% currently imposed by the UK on car exports from the US will be significantly reduced; tariffs on steel and aluminum products exported to the US will also be lowered to zero; the UK will abolish or reduce the 2% digital sales tax imposed on large American e-commerce companies like Amazon; tariffs on US agricultural products will also be reduced. Trump stated that this agreement will generate $6 billion in external revenue for the US through a 10% tariff, create $5 billion in new export opportunities for American farmers and producers, and strengthen national security for both the US and UK by establishing an aluminum and steel trade zone and a secure pharmaceutical supply chain. More details of the agreement are expected to be announced in the coming weeks.
Even more exciting for the market is that Trump claimed at a press conference that he expected US representatives to have a 'pleasant weekend' during trade negotiations with China. This statement has been widely interpreted as a positive signal of reconciliation from the Trump administration to China amidst ongoing US-China trade frictions, bringing a glimmer of hope for easing the tense global trade situation.
These positive trade developments have effectively alleviated market concerns about the escalation of global trade protectionism, greatly boosting investor confidence. Encouraged by this, major US stock indexes were all in the green on May 8: the Dow Jones Industrial Average rose by 0.62%, the S&P 500 index increased by 0.58%, the Nasdaq Composite Index rose by 1.07%, and the Philadelphia Semiconductor Index also went up by 1.00%. The improvement in market risk appetite has also provided a favorable external environment for the rise of risk assets like Bitcoin.
In addition to favorable macroeconomic factors, the positive movements of major global economies in cryptocurrency regulation have also boosted market confidence. The UK government recently released a 27-page draft of cryptocurrency legislation (the Financial Services and Markets Act 2000, Order 2025) and its policy explanatory content, aiming to establish clear and new cryptocurrency laws to strengthen investor confidence and provide necessary consumer protection.
The core content of the draft includes redefining stablecoins and other cryptocurrency assets, and clearly bringing activities such as custodial services for cryptocurrencies, operating cryptocurrency exchanges, and actions by cryptocurrency traders and brokers under regulatory scope. UK Chancellor of the Exchequer Rachel Reeves emphasized in a statement: 'Through our adjustment plan, we are making the UK the best place in the world for innovation and the safest place for consumers. Rigorous regulations related to cryptocurrencies will strengthen investor confidence, support the development of fintech, and protect the British public.'
Importantly, the UK Treasury has clearly stated its intention to strengthen cooperation with the US to support innovation in the cryptocurrency industry. Reports indicate that Chancellor Reeves has discussed topics such as 'strengthened cooperation between the UK and the US on digital securities' with US Treasury Secretary Scott Bessent, and mentioned proposals regarding digital assets by SEC Commissioner Hester Peirce. The two treasuries will continue dialogue and explore how to 'support the use and responsible growth of digital assets' within the framework of the 'UK-US Financial Regulatory Working Group.'
Although the UK government has also emphasized that it will crack down on bad actors in the cryptocurrency space, its regulatory approach may not be entirely 'hands-off.' Some communities remain cautious, fearing potential past overregulation by the UK. However, the willingness and positive stance shown by the US and UK in the field of cryptocurrency regulation undoubtedly release positive signals for the healthy development of the global cryptocurrency industry and international regulatory coordination. The UK government is expected to promote the final cryptocurrency legislation as soon as possible after consulting with the industry on the drafted legal terms.
US-China tariff issues
Against the backdrop of the US-UK trade agreement and the UK's proactive regulation of cryptocurrencies, the market's focus has begun to shift towards the unresolved US-China tariff issues. President Trump’s statement that US representatives may have a 'pleasant weekend' in trade negotiations with China, although only a preliminary signal, has already sparked limitless speculation in the market.
As the most important bilateral economic and trade relationship in the world, the direction of US-China trade relations has a significant impact on the global economy and financial markets. If the two countries can reach a substantial easing agreement on tariff issues, it will undoubtedly greatly boost the global market's risk appetite and unleash massive liquidity. In this case, Bitcoin, which is increasingly viewed by many investors as 'digital gold' and an alternative safe-haven asset, is likely to become an object of capital pursuit, potentially igniting a new and more intense bull market.
Of course, the complexity and uncertainty of US-China trade negotiations still exist, and the road to a comprehensive agreement may still be long. However, market expectations often lead reality, and any positive signal regarding the improvement of US-China trade relations could become a catalyst for stimulating the price increases of cryptocurrencies like Bitcoin.
Looking ahead, if there can be significant progress in the US-China tariff issues, it will undoubtedly provide greater imaginative space for Bitcoin and the entire cryptocurrency market. However, investors still need to maintain a clear mind, closely monitor global macroeconomic trends, the specific implementation of regulatory policies in various countries, and the technological development and risk factors within the cryptocurrency market itself. In a market environment where opportunities and challenges coexist, rational analysis and cautious decision-making are essential to navigate the turbulent waves of digital assets steadily.
