Trump’s UK Trade Deal Triggers New Wave of Crypto Market Growth
Bitcoin has once again crossed the $100,000 threshold, reaching this psychologically important mark for the third time in its history. The rally was triggered by a wave of optimism following the trade deal between the US and UK, as well as the Federal Reserve’s decision to maintain current interest rates. The first cryptocurrency peaked at $100,200 late Wednesday evening, after which it slightly corrected. At the time of writing, BTC is trading around $101,431, showing a 4.83% increase over the past 24 hours. During this rally, short positions worth more than $541 million were liquidated, indicating strong bullish momentum in the market.
Third Ascent to the $100,000 Mark and Its Catalysts
Bitcoin’s current breach of the $100,000 mark is the third in history following its initial breakthrough on December 5, 2024, and a subsequent record high on January 20, 2025, shortly before US President Donald Trump’s inauguration. Since then, the cryptocurrency’s price has fluctuated predominantly in the range of $85,000 to $97,000, consolidating after the powerful rally of late 2024.
The key catalyst for the current growth was President Trump’s announcement of a trade deal with the UK. The agreement provides for reducing tariffs on UK car exports to the US from 27.5% to 10% and eliminating duties on steel and aluminum. The deal also opens UK markets to more US agricultural products, including beef and ethanol.
Particularly important is that Trump signaled willingness to conclude similar agreements with the European Union and China in the future. This is the first major pact since the administration introduced a tough tariff regime, and it has notably eased concerns about inflation related to supply chain disruptions.
“The US-UK trade deal was an unexpectedly positive signal for markets,” comments Alex Smirnov, senior analyst at investment company Digital Assets Fund. “After several months of increasing protectionism, investors saw signs that the Trump administration is ready for compromises in trade policy, which reduces the risks of global recession. Bitcoin reacted particularly strongly, as it is now perceived both as a protective asset and as an indicator of risk appetite.”
Another factor contributing to Bitcoin’s growth was the Federal Reserve’s decision to maintain interest rates at the current level, with no signs of imminent increases. This position creates a favorable environment for risk assets, including cryptocurrencies.
Mass Liquidations and Capital Flow into Bitcoin
The sharp rise in Bitcoin’s price led to massive liquidations of short positions. According to CoinGlass, over the past 24 hours, 144,492 traders saw their positions liquidated, with total losses reaching $581.13 million. The largest individual liquidation occurred on Binance, where a BTC/USDC position worth $10.59 million was closed.
Notably, Bitcoin’s dominance in the cryptocurrency market has risen above 60% for the first time since early 2021. This indicates that amid persistent geopolitical uncertainty, traders prefer BTC over altcoins.
“We’re observing a classic scenario of flight to the market leader during a period of uncertainty,” explains Maria Petrova, head of the research department at cryptocurrency exchange CryptoExchange. “When volatility increases, institutional investors typically reduce risks by concentrating on the most liquid and historically stable assets. In the crypto space, this is undoubtedly Bitcoin.”
Bitcoin’s current dominance (over 60%) significantly exceeds the indicators of previous periods when the price approached the $100,000 mark. During those periods, BTC dominance typically fluctuated between 52% and 54%. This may indicate particularly strong interest from institutional investors, who traditionally prefer the first cryptocurrency.
The wave of optimism has spread to other digital assets as well. Ethereum (ETH), Solana (SOL), and several other leading cryptocurrencies are showing confident recovery, although most are still trading significantly below their highs reached earlier this year.
Technical Analysis and Market Outlook
From a technical analysis perspective, breaking through the $100,000 mark—a key psychological level—creates prerequisites for a potential move to $105,000, a level last tested in November 2023. Analysts suggest that a confident breach of this mark could open the way to $120,000 in the near term.
Geoff Kendrick of Standard Chartered notes that this rally is being driven by genuine capital inflows through spot Bitcoin ETFs, which distinguishes it from previous surges that were largely fueled by hedge fund basis trades. He now considers his earlier Q2 target of $120,000 for Bitcoin potentially too modest.
“ETFs have created a fundamentally new channel for Bitcoin investment, lowering entry barriers for traditional investors,” comments Alex Smirnov. “We’re seeing constant inflows into Bitcoin ETFs, especially from institutions that previously feared direct interaction with cryptocurrencies due to operational and regulatory risks.”
Former Binance CEO Changpeng Zhao has reiterated his forecast that Bitcoin could reach between $500,000 and $1 million in the current market cycle. While such forecasts are viewed with caution by many, they reflect growing optimism about the long-term prospects of the first cryptocurrency.
“Macroeconomic conditions are favorable for Bitcoin,” believes Petrova. “On one hand, inflation concerns stimulate demand for protective assets with limited supply. On the other hand, easing trade tensions and stable rates create a comfortable environment for risk investments. Bitcoin is now at the intersection of these trends, which makes it particularly attractive.”
At the time of writing, the BTC/USDT pair is trading around $101,431, reflecting a 4.83% increase over the past 24 hours. The intraday high reached $101,879, while the low touched $95,959. To consolidate above the $100,000 mark, Bitcoin needs to hold above this level for several days, which will create a new support zone and a base for further growth.