Bitcoin jumped (BTC-USD) after $ 99,300 (£ 74,786) early Thursday, approaching $ 100,000 (£ 75,113) an important point, against the backdrop of optimism around US President Donald Trump’s trade deal with the United Kingdom.
The largest market capitalization cryptocurrency has won over 2.5%, set by expected tariff reduction and improving macroeconomic conditions.
Trump is expected to announce the framework of the UK’s trade agreement at a press conference later on Thursday.
In a social media publication on Wednesday, US President Donald Trump annoys that a commercial deal will come on Thursday,
He said the conference refers to “a major commercial transaction with representatives of a large and very respected country. The first of many !!!”
Bloomberg has announced that according to people familiar with the issue, the agreement is expected to be with the United Kingdom.
The deal is expected to include a reduction in tariffs of key sectors such as automotive and digital services. This will mark the first significant trade agreement on the administration, as the imposition of extensive tariffs on commercial partners last month.
Read more: Crypto prices live
The announcement has a positive effect on the financial markets as well as in the cryptocurrency market. US equity indices have published profits before the market. Dow’s Futures (YM = F) increased by 0.55%, S&P 500 Futures (ES = F) increased by 0.78%and NASDAQ futures (NQ = F) up 1.09%.
Risk assets still absorb the effects of the Federal Reserve’s decision on Wednesday to maintain stable interest rates in the range of 4.25% to 4.5%.
However, Nexo analyst Ilia Kalchev told Yahoo Finance UK that the constant commitment of the US Federal Reserve for quantitative tightening can limit the longevity of any rally.
“Bond yields, especially at the long end, can be overcome higher in response to sustainable runoff, while the US dollar can see a modest reinforcement as expectations for fading the rotating Devish,” Kalchev said.
“Risk assets such as cryptocurrencies and growth reserves can enjoy short-term support, although the stricter financial conditions remain a limiting factor in the medium term.”
Although the full details of the potential US and the United Kingdom remain unclear, any return of tariffs can provide impetus to risk assets, Kalchev added.
Bitcoin’s rally unfolds, even when the Federal Reserve defies plans earlier to alleviate the pace of balance. The balance is when the Fed allows some of his bonds to leak without replacing them, which slowly removes money from the economy to cool things.