Bitcoin🔥🔥🔥 reaches its highest level in months.. traders prepare to break a significant level🔥🔥🔥
Bitcoin recorded a rise above $99,000 early Thursday, its highest price since February, after President Donald Trump hinted at the possibility of an international trade deal with the UK.
Cryptocurrency is now close to surpassing the $100,000 mark, having risen by 2.6% in the last 24 hours. Meanwhile, Ethereum jumped by 4% to $1,914.
Amid the significant rise of Bitcoin nearing the $100,000 mark, influenced by political announcements such as Trump's trade deal with Britain, Investing Pro analyses have become essential for tracking the performance of companies linked to cryptocurrencies. We provide in-depth analyses of the performance of companies like "MicroStrategy" and "Coinbase", and smart forecasts of market trends based on the latest political and economic developments.
Trump hints at an anticipated trade deal with Britain.
Trump posted late Wednesday evening on "Truth Social" saying: "A massive trade deal with representatives of a large and highly respected country," announcing a press conference Thursday morning at the White House.
According to sources quoted by the New York Times, the anticipated deal includes Britain, marking a potential diplomatic achievement after months of economic tensions arising from tariffs under Trump's "Liberation Day" agenda.
Britain had been subjected to a general 10% tariff and 25% on sectors like steel, aluminum, and automobiles under the U.S. customs system. British officials have called for a reduction of these tariffs, and the agreement is expected to address these issues. In return, the UK may consider reducing the digital services tax and eliminating some tariffs on U.S. agricultural products.
Federal Reserve data supports the markets and stocks rise.
The rise of the largest cryptocurrency in the world coincided with a cautious update from the Federal Reserve regarding monetary policy earlier today, as stock indices, including the S&P 500 and Dow Jones, rose slightly by less than 1%.
While the Fed kept interest rates in the range of 4.25% to 4.50%, Fed Chairman Jerome Powell acknowledged a "high level of uncertainty," while also confirming that "the economy remains strong."
Analysts' outlook: The market still needs confirmations.
Orly Bartir, the chief analyst at the analytics platform "Nansen", told Decrypt that the comments from Trump and Treasury Secretary Scott Pisent sent signals to the markets that "the escalation of tariffs may be less severe than feared."
Bartir noted that traders have begun treating the Trump administration as a "risk support."
However, she warned that "this rise still needs confirmation," especially as trade talks with China continue.
She explained: "We priced in the first scenario," referring to the internal forecasts of the "Nansen" platform, which predicts a 55% chance that Bitcoin will gradually reach new record levels.
However, Bartir confirmed that the upward momentum has now become "less cohesive," indicating that the chances of upward surprises have weakened.
Broader perspective: The changing relationship between Bitcoin and traditional markets.
For his part, Marcin Kazmierczak, CEO and co-founder of the data analytics platform "RedStone", provided a broader view of the situation, noting that Bitcoin's relationship with traditional markets has been volatile over the past year.
Kazmierczak told Decrypt: "Bitcoin shows volatility in correlation with the S&P 500 index over the past year, ranging between -0.2 and 0.4."
He explained that this places Bitcoin in the "diversifier" category, and not a true "safe haven," as it "does not always move inversely to stocks during downturns."
In its latest reports, the "Nansen" platform warned that market sentiment may "outperform fundamentals."
The report highlighted the sharp decline in the risk premium on stocks, which fell below 3%, as evidence that traders "are underpricing negative risks," despite weak consumption data, stalled trade talks with China, and continued rising inflation in the core services sector.
