Bitcoin climbed above $100,000 on Thursday for the first time in nearly a month, in what marked a roaring comeback for the world's most widely used cryptocurrency. That is just weeks after a time when Bitcoin traded below $75,000 as the market navigated uncertainty.
The rebound comes after a month of mixed economic signals for the global economy, between a growing interest in crypto ETFs, fresh stimulus from China, and easing geopolitical tensions. All of these factors, combined with a new major trade deal between the United States and the United Kingdom, have led to the reignition of investors' confidence.
By Thursday afternoon, Bitcoin had climbed to $101,329.97, marking a 4.7% rise for the day. While it remains shy of the record peak above $109,000 seen in January, the latest jump highlights a significant rebound from recent lows. Ether, the digital asset powering the Ethereum platform, also saw notable gains, soaring over 14% to reach $2,050.46 — its strongest performance since the end of March.
A new trade deal between U.S. President Donald Trump and British Prime Minister Keir Starmer has fueled the crypto rally. The deal, announced on Thursday, retains a 10% tariff on U.K. goods entering the U.S. while lowering British tariffs on American products from 5.1% to 1.8%. The deal represents a major breakthrough in trade relations since Trump resumed office in January and accelerated trade tariffs that roiled markets earlier this year.
"It's a formidable feat," said Antoni Trenchev, a co-founder of the crypto platform Nexo, of the milestone $100,000 surge. He pointed out that just a few weeks ago, Bitcoin was trading at less than $74,000 and deemed that the recovery is testament to the power of long-term holding. "Buying peak fear can be very profitable," Mr. Trenchev said in the statement, noting that demand from long-term holders is helping to carry prices higher even as short-term investors keep selling.
Earlier this year, Bitcoin faced pressure due to news that the Trump administration was imposing new tariffs on several major trading partners. This prompted a generalized risk-off sentiment, with traders unwinding risky positions, such as those from cryptocurrencies. The wider crypto market followed global equities into a freefall, with each experiencing substantial losses from February to April.
But sentiment turned at the end of April. Analysts credit several factors for enabling Bitcoin's recovery. The factors include increased institutional investment, particularly in Bitcoin-related exchange-traded funds (ETFs), improving international relations, and recent measures by China to stimulate its economy through monetary easing.
Brokerage firm LMAX Group's strategist Joel Kruger noted the significance of institutional investors. "We've observed constant inflows into crypto-dedicated ETFs. Add to that better trade relations and global stimulus, and you have a clear reason why Bitcoin is surging," Kruger said.
