Bitcoin and altcoins rallied on Thursday, reaching near $100K as traders responded to a U.S.-UK trade deal and stable Fed interest rates. Coinbase’s acquisition of Deribit and rising institutional inflows further boosted market confidence, pushing total crypto market cap beyond $3 trillion.
Bitcoin and various altcoins saw a significant uptick on Thursday, with traders reacting positively to the first major trade deal announced after Donald Trump’s Liberation Day speech. Bitcoin (BTC) experienced a rise, reaching around $99,415, as market bulls pushed for it to breach the much-anticipated $100,000 barrier, which could set the stage for a test of its all-time high sitting at $109,300.
Among the notable altcoins in this surge were Pudgy Penguins (PENGU), Virtuals Protocol (VIRTUAL), Brett (BRETT), and Pepe (PEPE). This collective push even lifted the overall cryptocurrency market cap to an impressive figure exceeding $3.10 trillion, a solid indicator of investor enthusiasm in the space.
This upswing can be traced back to the Federal Reserve’s recent interest rate decision. As many anticipated, the rates held steady at 4.25%–4.50%, with the Fed signalling a cautious stance moving forward. Analysts are especially looking toward a rate cut later this year, with many eyeing a targeted cut in September, while markets don’t expect adjustments during the June or July meetings.
Despite the Fed’s somewhat hawkish outlook, positive investor sentiment emerged as the outcome aligned with expectations, prompting a rise in Bitcoin and altcoin prices. Adding to this momentum was the announcement of a new trade agreement between the United States and the United Kingdom. The deal will see reduced tariffs on UK steel and automobiles, while the UK will eliminate an $800 million digital tax aimed at American tech companies.
This trade agreement comes just as U.S. and Chinese officials gear up for new discussions in Switzerland, which could potentially ease ongoing trade tensions. Analysts believe that lowered tariffs in U.S.-China relations could further enhance both crypto and equity markets, along with supporting possible future cuts to Fed rates, fostering a more favorable environment for investors.
Additionally, the excitement ramped up after Coinbase, the leading cryptocurrency exchange in the U.S., announced its acquisition of Deribit. This move, valued at a staggering $2.9 billion, places Coinbase in a prime position in the options and futures sector, crucial for the industry’s growth.
In a statement about the acquisition, Spencer Young, co-founder of Fractal Bitcoin pointed out, “Global derivatives trading is a key driver of growth for Coinbase. Deribit is the platform of choice for global traders for Bitcoin and Ethereum options. Their platform has a strong operating history and is the only major independent company with similar DNA to Coinbase. They’ve not launched a token and have an AUM of $4B.”
Adding to the rally, institutional interest in Bitcoin has remained robust, with spot Bitcoin ETFs recording $142 million in inflows on Wednesday alone. This brings the weekly total to $482 million, marking approximately $5.7 billion in net inflows for the year to date. The combined effect of all these factors has clearly set a positive tone in the crypto market today.
In conclusion, the recent surge in Bitcoin and altcoin prices can be attributed to a mix of positive market news, including the Fed’s steady interest rates and a new U.S.-UK trade agreement. Coinbase’s significant acquisition of Deribit also plays a key role in boosting confidence among traders. As institutional interest continues to grow, the crypto market is clearly energized, hinting at potential future gains.
Original Source: crypto.news
