Bitcoin topped $100,000 on Thursday for the first time
Bitcoin has exceeded $100,000, fueled by optimism surrounding a comprehensive trade agreement between the US and the UK. Bitcoin surpassed $100,000 on Thursday for the first time since early February, supported by a comprehensive agreement between the United States and the United Kingdom, suggesting a potential easing of US President Donald Trump’s trade tensions with the global market.
By midday, bitcoin was trading at $101,402.19, reflecting a 4.8 per cent increase for the day. The largest cryptocurrency has managed to return to positive territory for the year, yet it continues to fall short of the all-time high exceeding $107,000 attained in December. The cryptocurrency market experienced heightened activity following the announcement by Jerome Powell of the US Federal Reserve to maintain interest rates within the range of 4.25 percent to 4.50 percent, while recognizing ongoing economic resilience. Market analysts contend that this has bolstered favorable market sentiment for cryptocurrencies.
This bullish momentum, according to Piyush Walke – derivatives research analyst at Delta Exchange, is likely to sustain as investors increasingly perceive Bitcoin as a store of value rather than merely a speculative asset. The next key level to monitor is the $100,000 mark, which Walke posits also functions as a significant psychological resistance—potentially inciting some minor selling pressure. “The Federal Reserve’s decision not to cut interest rates signals a continued focus on controlling inflation, reinforcing a tight monetary policy stance.” Bitcoin exhibited a favorable reaction to the announcement, increasing by roughly 2,000 points. Meanwhile, cumulative inflows into Bitcoin ETFs have reached a new all-time high of $40.62 billion, underscoring a significant increase in institutional participation and further affirming Bitcoin’s status as a mainstream investment vehicle,” stated Walke.
In alignment with these perspectives, Edul Patel, co-founder and CEO of Mudrex, remarked that the US Federal Reserve’s choice to maintain benchmark interest rates, while recognizing ongoing economic robustness, has bolstered favorable market sentiment. Meanwhile, China’s liquidity-boosting measures and the Fed’s return to quantitative easing, with over $34 billion in bond purchases this week, have established a favorable macroeconomic environment for cryptocurrency. “Any fresh wave of liquidity could reduce real yields, devalue fiat, and potentially drive further inflows into crypto assets,” stated Patel.
Sentiments were positive among other cryptocurrencies as well. Ethereum, the world’s second-largest cryptocurrency by market capitalization, was trading higher by 3.96 per cent at $1,899.90. It has fluctuated between $1,788.69 and $1,913.43 over the past 24 hours. Ethereum is approximately 61 percent below its peak value of $4,891.70, which was attained on January 16, 2021. Among other popular altcoins, Solana was leading the charge with gains of 3.31 per cent, followed by Cardano up 3.81 per cent, Ripple up 2.05 per cent, and Binance Coin up 0.94 per cent. Meanwhile, the US dollar-linked stablecoin Tether was trading at $1, reflecting a modest increase of 0.01 percent. Bitcoin, Ethereum, EOS, Solana, and Bitcoin Cash were among the top trending crypto coins on CoinMarketCap.
