Bitcoin (BTC) soared past the psychological $100,000 mark for the first time since February, following the announcement of a significant U.S.-U.K. trade agreement under President Trump. This surge is attributed to improved macroeconomic sentiment, including reduced tariffs on U.K. exports and the easing of supply chain concerns. The news fueled optimism among traders, leading to a spike in risk asset investments and record liquidations for short sellers, totaling $581 million in losses across crypto exchanges.
Institutional investors, notably through increased spot Bitcoin ETF inflows, have played a strong role in this rally, marking a shift from previous hedge fund-driven surges. Bitcoin’s market dominance has also climbed above 60%—a level not observed since early 2021—indicating that traders are preferring BTC over altcoins amid ongoing geopolitical uncertainty.
Other digital assets, such as Ethereum (ETH) and Solana (SOL), experienced recoveries, though they remain below their previous all-time highs. Analysts highlight the technical bullishness of Bitcoin’s break above $100K and suggest further room for growth, targeting $105,000–$120,000 in the near term. Long-term projections from industry leaders, including ex-Binance CEO Changpeng Zhao, speculate on even more dramatic price ranges, eyeing $500,000 to $1 million during this market cycle.
Bitcoin’s appeal as a non-sovereign, tariff-free store of value has intensified, especially with increased investor interest during periods of economic volatility. Historical precedent shows that BTC has responded positively to major macro announcements, often followed by corrections, but persistent institutional demand underpins confidence in continued growth.