Bitcoin Tops $100,000 on Hopes of Trade Deal Breakthrough
By: fxleaders|2025/05/08 17:30:02
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In a session marked by caution across traditional markets, cryptocurrencies surged ahead, showing complete disregard for the U.S. Federal Reserve’s calls for prudence. Bitcoin ( BTC ) broke through the psychological barrier of $100,000 after climbing 4% in the past 24 hours, according to Binance data. Ethereum ( ETH ) also saw notable gains, edging just above $2,000 with a 12% increase. The enthusiasm spread across the broader altcoin space. Tokens like Dogecoin ( DOGE ) and Cardano ( ADA ) posted gains above 4%, while Sui (SUI) led the way with an 8% rally. Other major cryptocurrencies, including XRP , Solana (SOL), and Tron (TRX), also trended upward, though with more moderate increases. As of now, virtually none of the high-cap cryptos are posting losses on the day. Analysts link this renewed crypto rally to growing anticipation of a major trade announcement by the United States. According to various sources, the U.S. government is nearing a trade deal with the United Kingdom — a move that would mark a milestone in post-Brexit relations. President Donald Trump is expected to hold a press conference time to unveil what he described as a “significant trade agreement with representatives of a great and highly respected country.” On Truth Social, Trump emphasized: “THE FIRST OF MANY!!!” However, Bloomberg cautions that any deal announced could be limited in scope, noting that comprehensive trade agreements typically require years of negotiation. Meanwhile, the Fed continues to strike a cautious tone. In its latest meeting, the central bank opted to keep interest rates steady, holding them at the 4.25%-4.5% range set in December. While the decision was widely expected, market focus shifted to the language of the statement and the remarks of Fed Chair Jerome Powell. The Fed flagged rising risks tied to both unemployment and inflation — stoking fears of stagflation in the world’s largest economy. In the post-meeting press conference, Powell reiterated the need for caution, stating that rate cuts are far from guaranteed and that the path forward remains uncertain. He warned that recently announced tariffs, if maintained, could fuel inflationary pressures, slow economic growth, and worsen labor market conditions. “The appropriate response is to wait and see,” he said.
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