Bitcoin’s value surged past the $100,000 threshold on Thursday, marking its highest point since February.
This increase reflects a growing appetite among investors for riskier assets, spurred by the recent trade agreement unveiled by Britain and the United States.
Stephane Ifrah, an analyst at the cryptocurrency platform Coinhouse, commented on this upward trend.
He suggested that the United States’ apparent shift towards more reasonable international relations, evidenced by the trade deal, is contributing to the resurgence of cryptocurrencies.
Bitcoin first breached the significant $100,000 level in December of the previous year.
It reached a peak of $109,241.11 on January 20, shortly before US President Donald Trump’s inauguration.
During his campaign, the Republican leader had expressed support for cryptocurrencies.
However, a subsequent wave of tariffs imposed by the US on various countries created uncertainty and dampened financial markets globally.
Despite not being directly affected by these tariffs, cryptocurrencies, known for their volatility, saw investors move towards safer assets like gold.
The cryptocurrency sector has also faced challenges from scandals, including the collapse of $LIBRA, a cryptocurrency once endorsed by Argentine President Javier Milei.
Its price plummeted after early investors sold off large holdings for substantial profits, resulting in significant losses for the majority of later buyers and negatively impacting other cryptocurrencies, including Bitcoin.
Argentine prosecutors are reportedly investigating potential misconduct by Milei related to his promotion of $LIBRA.
Further setbacks included a major hacking incident in February, where the Dubai-based exchange Bybit reported a $1.5 billion theft of digital assets. Following these events, Bitcoin’s price had fallen to $75,000 in early April.
Charlie Morris, an analyst at ByteTree, noted Bitcoin’s strength in relation to the stock market.
He views the UK trade deal as a positive indicator, suggesting that more such agreements are likely to follow, bolstering market confidence.
Adding to the regulatory landscape, the UK government released draft legislation in late April aimed at regulating cryptocurrencies like Bitcoin and Ethereum, following the European Union’s establishment of its own regulatory framework.
