Bitcoin Breaks Above $99,000 Amid US-UK Trade Agreement Hopes

Bitcoin broke above the $99,000 mark on May 8, climbing 2.6% in 24 hours, as markets responded to news of an imminent trade agreement between the United States and the United Kingdom. The rally was sparked by President Donald Trump’s announcement of a forthcoming Oval Office press conference to unveil what he described as a “major trade deal” with a “highly respected” country, widely reported to be the UK.

While the White House has not officially named the partner country, multiple sources familiar with the discussions confirmed that the agreement is expected to be with Britain. Negotiations have been underway for weeks, with the UK government seeking relief from tariffs imposed last month, including a 10% levy on most goods and higher rates on steel, aluminum, and automobiles. The anticipated deal is likely to reduce or eliminate some of these tariffs, offering a potential boost to both economies.

Market participants welcomed the development as a possible step toward easing global trade tensions, which have weighed on equities and cryptocurrencies in recent months. Bitcoin, in particular, has been sensitive to shifts in US trade policy, previously tumbling below $75,000 after fresh tariffs on China but rebounding on renewed optimism and strong inflows into crypto investment products.

Adding to the positive sentiment, US Treasury Secretary Scott Bessent is scheduled to meet with top Chinese officials in Switzerland this week, marking the first formal talks since the latest round of US-China tariff hikes. The meeting is seen as a tentative move to break the deadlock that has unsettled global markets.

Meanwhile, the Federal Reserve’s recent decision to hold interest rates steady between 4.25% and 4.50% has provided additional support to risk assets, even as Fed Chair Jerome Powell warned of ongoing uncertainty due to trade policy. Powell cited the resilience of the US economy and low unemployment as reasons for patience, though inflation remains above target.

With macroeconomic conditions stabilizing and optimism building around international trade, analysts say Bitcoin could soon test the psychologically significant $100,000 threshold. Investors are closely watching for further developments as the digital asset approaches new record highs.