Bitcoin Price Analysis: BTC On Brink Of $100,000 As White House Announces Trade Deal

Bitcoin (BTC) posted a substantial rally during the ongoing session, surging past $97,000 as bullish sentiment returned to the crypto markets. Markets rallied after the White House announced a trade deal with the UK. 

BTC is up nearly 3% during the ongoing session and trading around $99,500 as buyers look to build momentum and shatter the $100,000 barrier. 

Markets Rally As Trump Announces Trade Deal 

The crypto market rallied on Thursday as expectations of the announcement of a major trade deal buoyed investor sentiment. As a result, BTC surged past the immediate resistance around $97,000 and crossed $99,000 to move to its current level. President Trump announced on Truth Social that a major trade deal would be announced, the first of many such agreements to be announced since the imposition of various tariffs on trading partners. Trump stated he would hold a press conference announcing the deal at 10:00 in Washington DC. Sentiment became more bullish after it emerged the trade deal would be announced with the UK, according to reports quoting sources familiar with developments. 

The announcement of the deal is expected to power Bitcoin beyond $100,000 and spark a rally in the crypto and traditional markets. Charlie Sherry, Head of Finance at Australian crypto exchange BTC Markets, stated, 

“As is often the case in markets, just when consensus leans heavily bearish, price bottoms form, and new market structures start to emerge. While we may see psychological resistance at the $100k mark, it seems inevitable Bitcoin puts another zero on the board.”

Trump’s announcement about an impending trade deal came hours after the US Federal Reserve announced it was keeping interest rates steady between 4.25% and 4.50%. Bitcoin has not hit $100,000 since February 1 after President Trump imposed tariffs on major trading partners, including China, Canada, and Mexico. 

Federal Reserve Leaves Interest Rates Unchanged 

The United States Federal Reserve kept interest rates between 4.25% and 4.5% following the Federal Open Market Committee (FOMC) meeting. The committee highlighted high inflation and unemployment as key factors behind its decision. The Federal Reserve is walking a tightrope as it navigates uncertainty created by Donald Trump’s tariffs and an economy that is showing signs of resilience and weakness. Federal Reserve Chair Jerome Powell ruled out a pre-emptive rate cut, stating that inflation remained above acceptable levels. 

“While we may see psychological resistance at the $100k mark, it seems inevitable Bitcoin puts another zero on the board.”

The Fed has kept interest rates steady since December as it evaluates the impact of Trump’s tariff policies and escalating trade tensions. 

Powell stated that negotiations with key trading partners could have a material impact on the economic outlook, 

“It seems to be we’re entering a new phase where the administration is beginning talks with a number of our important trading partners, and that has the potential to change the picture materially — or not. It’s going to be very important how that shakes out.”

The Fed Chair also ruled out meeting with President Trump, stating he has not asked to meet with Trump or any other US President. 

“I’ve never asked for a meeting with any president, and I never will. I wouldn’t do that. There’s never a reason for me to ask for a meeting. It’s always been the other way. I don’t think it’s up to a Fed chair to seek a meeting with the president.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) surged past $99,000 earlier today, reaching an intraday high of $99,859 as markets turned bullish after President Trump announced an impending trade deal. The White House eventually announced a trade deal with the UK, with markets rallying to the news. Analysts believe a move beyond $100,000 could indicate the beginning of a new bull cycle. Bitcoin’s realized cap has also registered a notable jump, reaching $891 billion on May 7. CryptoQuant contributor Carmelo Aleman stated, 

“Bitcoin has experienced a steady flow of capital inflows in recent weeks, reflecting renewed interest from investors.”

The analyst argued that the realized cap uptrend indicates a shift across the Bitcoin investor spectrum. 

“This new all-time high in Realized Cap not only reflects a surge in invested capital but also a growing conviction in Bitcoin’s long-term potential as a financial asset. With sustained accumulation from both LTHs and STHs, the market appears to be building a solid foundation for a potentially significant price breakout. If this trend continues, we could be witnessing the early stages of a new bull cycle for Bitcoin.”

Bitcoin bulls are trying to dismantle the resistance at $100,000 but face considerable selling pressure. However, crypto analytics platform Santiment stated that Bitcoin wallets holding between 10 and 10,000 BTC are positive about further gains and have acquired 81,338 BTC over the past six weeks. 

BTC started the previous week on a positive note, rising 1.28% and settling at $95,002. However, it lost momentum on Tuesday and fell 0.70% to $94,342. The price encountered volatility on Wednesday as buyers and sellers struggled to establish control. Sellers ultimately gained the upper hand as BTC registered a marginal decline and settled at $94,155. Sentiment changed on Thursday, and BTC rallied 2.45%, surging past $96,000 and settling at $96,458. The price raced to an intraday high of $98,000 on Friday before settling at $96,939, ultimately registering an increase of 0.50%.

Source: TradingView

BTC lost momentum over the weekend as selling pressure returned. As a result, the price fell 0.98% on Saturday and 1.66% on Sunday, slipping below $95,000 and settling at $94,390. Despite the bearish weekend, BTC started the week positively, registering a marginal increase and settling at $94,773. Bullish sentiment intensified on Tuesday as the price rose over 2%, surging past $96,000 and settling at $96,845. A marginal increase on Wednesday saw BTC claim $97,000 and settle at $97,013. BTC rallied during the ongoing session, looking to break past $100,000. The flagship cryptocurrency is up over 2% and trading around $99,300.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.