Why Bitcoin Hit $100K: Is Trump's US-UK Trade Deal the Trigger?

Bitcoin’s price crossing the $100,000 mark has reignited excitement in the cryptocurrency world and beyond. This milestone, reached for the first time since early February 2025, coincided with a significant development in global trade: a breakthrough trade deal between the United States and the United Kingdom. 

Announced by President Donald Trump and British Prime Minister Keir Starmer, this agreement has sparked optimism among investors, fueling a sharp rally in Bitcoin and other risk assets. This article explores the factors behind Bitcoin’s surge, especially how the US-UK trade deal and broader geopolitical dynamics have influenced market sentiment and investor behavior.

The US-UK Trade Deal and Its Market Impact

On May 8, 2025, President Trump and Prime Minister Starmer unveiled a trade agreement that, while maintaining certain tariffs, notably reduced others and opened pathways for greater market access between the two countries. 

The deal includes a 10% tariff on UK goods entering the US, while the UK agreed to reduce some tariffs from 5.1% to 1.8%, particularly in sectors like automotive and digital services. This agreement marked the first major trade pact under Trump’s current administration following earlier tariff escalations.

Markets responded positively, viewing the deal as a signal that trade tensions were easing. US stock indices rose sharply, and cryptocurrencies surged, with Bitcoin climbing above $100,000 and Ethereum posting substantial gains. The trade deal suggested more stable international relations and reduced geopolitical risk, both of which tend to attract investment into higher-risk assets like cryptocurrencies.

Why Bitcoin Reacted Strongly to the Trade Deal

Bitcoin’s sharp rally following the announcement stems from several key factors:

1. Reduced Market Uncertainty: Easing trade tensions typically lead investors to reallocate capital from safe-haven assets to higher-risk opportunities. The agreement indicated a shift in the Trump administration’s previously aggressive trade stance, boosting overall market confidence.
    
2. Favorable Macroeconomic Conditions: The announcement coincided with falling bond yields and a weakening US dollar—conditions that often favor alternative assets like Bitcoin. Investors seeking to hedge against inflation or currency debasement found renewed interest in crypto.
    
3. Institutional Momentum: Interest from institutional players has grown, with increased investments in Bitcoin ETFs and digital asset platforms adding to upward price pressure.
    
4. Supportive Policy Signals: Trump had earlier signed an executive order outlining a strategic Bitcoin reserve and plans to support the digital economy. The trade deal reinforced the perception that crypto-friendly policies could expand under his administration, encouraging further investment.
    

Broader Market Context and Bitcoin’s Price Dynamics

Bitcoin’s rise to $100K should also be seen against the backdrop of its recent volatility. After hitting a record high of around $109,000 in January 2025, the cryptocurrency declined along with equities amid trade war fears and policy delays. The bounce from a low near $76,000 in April to over $100,000 reflects a renewed appetite for risk and growing optimism about the global economic outlook.

Long-term holders have also supported this rally. Investors who have held Bitcoin for over 155 days continued accumulating during the downturn, helping to stabilize prices and offset short-term selling pressure. This behavior suggests confidence in Bitcoin’s long-term value as a store of wealth and inflation hedge.

While Ethereum and other cryptocurrencies have also benefited, Bitcoin’s position as the flagship digital asset makes it particularly sensitive to major macroeconomic and geopolitical shifts. The US-UK deal, signaling reduced trade friction and potential economic growth, served as a key catalyst for Bitcoin’s renewed strength.

Read Also: Trump Tariff Impact on BTC: Is This Bitcoin Crash Worth Taking Advantage Of?

What This Means for the Future of Bitcoin and Crypto Markets

The Bitcoin rally and the US-UK trade deal highlight the increasing interplay between traditional geopolitics and the crypto economy. Improved trade relations can ease inflationary concerns and create more room for innovation and digital asset investment.

Looking forward, the potential for additional trade agreements and sustained pro-crypto rhetoric under Trump could continue to drive market momentum. However, risks remain, including possible policy reversals, new regulations, and global economic volatility.

Bitcoin crossing $100,000 again underscores its growing role as a mainstream financial instrument. As the global trade landscape evolves, Bitcoin may attract even more capital as a diversification and risk management tool.

Conclusion

Bitcoin’s surge past $100,000 in May 2025 was closely linked to the announcement of a US-UK trade deal brokered by President Trump. The deal eased trade tensions, reduced tariffs, and boosted market confidence—creating ideal conditions for Bitcoin and other risk assets to rally. 

Supported by favorable macro trends and institutional interest, Bitcoin overcame recent lows and reasserted its strength. While this trade agreement is just one factor among many, it clearly played a pivotal role in the cryptocurrency’s renewed momentum and may continue to shape its trajectory as global economic dynamics shift.

FAQ

Why did Bitcoin surge to $100,000 in May 2025?
Bitcoin’s price rose due to optimism sparked by the US-UK trade deal, which improved investor sentiment and reduced trade-related uncertainty.

What is the US-UK trade deal about?
The agreement reduces certain tariffs and improves market access between the US and UK, signaling a move toward easing global trade tensions.

How does a trade deal affect Bitcoin’s price?
By reducing geopolitical risks and boosting investor confidence, trade deals often increase demand for risk assets like Bitcoin.

Is the Trump administration pro-crypto?
Yes, recent policy moves including support for a strategic Bitcoin reserve suggest a favorable stance toward digital assets.

Will Bitcoin continue to rise after this trade deal?
While the deal created positive momentum, Bitcoin’s future performance will depend on various factors including regulatory developments and global market conditions.