Bitcoin, the leading cryptocurrency by market capitalization, has surpassed the $100,000 mark for the first time in three months. The rally comes amid revived risk appetite following news of a successful trade agreement between the UK and the United States, easing concerns related to former President Trump’s trade war policies. Speculation that the U.S. may pursue a weaker dollar to reduce its trade deficit has also contributed to the surge in crypto prices.
According to CoinMarketCap on May 11, Bitcoin was trading at approximately $103,740 as of noon, up about 0.58% from the previous day. This marks a sharp rebound from its yearly low of $74,600, recorded after Trump’s major tariff policy announcement last month. Since reclaiming the $100,000 level on May 8, Bitcoin has held above that threshold for four consecutive days.
Altcoins have also posted significant gains. Ethereum (ETH), which had been in a downtrend since February, is up 64.88% from a month ago. Solana (SOL) has gained 52.88%, while Ripple (XRP) and Binance Coin (BNB) have risen 20.8% and 14.2%, respectively.
The surge in cryptocurrency prices is largely attributed to the resolution of trade uncertainties. The UK became the first major economy to finalize a trade deal with the U.S., mitigating concerns over Trump’s protectionist policies.
On May 8 (local time), Trump announced that trade negotiations with the UK had concluded successfully. Initially, the UK faced a universal tariff rate of 10%, but products like steel, aluminum (25%), and automobiles (25%) were subject to specific tariffs, prompting bilateral negotiations.
The finalized deal includes a reduction of tariffs on 100,000 UK-made vehicles to 10%, and exemptions on steel and aluminum tariffs for UK exports. In return, the UK agreed to expand imports of American goods, including beef, agricultural products, and aircraft. The market reacted positively as the deal reduced trade-related uncertainties.
Additionally, Trump stated on May 9 via social media that the U.S. may reduce tariffs on Chinese goods from 145% to 80%, further easing market concerns. "An 80% tariff on Chinese goods seems likely. This will be up to Treasury Secretary Scott B.," he wrote.
There is also growing speculation that the U.S. may tolerate a weaker dollar while pushing for currency appreciation among its trading partners. This added fuel to the crypto rally.
On May 1, the U.S. held its first-round trade talks with Taiwan. Although details remain undisclosed, rumors emerged that the U.S. pressured Taiwan to appreciate its currency. The Taiwan dollar surged nearly 10% in two days, and as Taiwanese authorities refrained from intervention, speculation about forced currency appreciation spread to other key trade currencies like the Korean won and Japanese yen, further weakening the U.S. dollar.
Thomas Perfumo, an economist at global crypto exchange Kraken, commented, “Bitcoin’s return to the $100,000 level reflects the resurgence of risk-on sentiment. With equities performing well, investors are becoming more comfortable allocating to riskier assets, and that enthusiasm is spilling over into crypto.”
