Bitcoin surged past the $100,000 milestone on Thursday, fueled by optimism surrounding President Donald Trump’s newly announced trade deal with the UK. The agreement, dubbed a “maxed-out deal” by Trump, is being positioned as a pivotal move to restore global trade stability and bolster economic growth after years of tariff-driven uncertainty.

At a press conference, Trump hailed the deal as a landmark achievement, emphasizing its scope and potential for expansion. “This is a maxed-out deal that will only get bigger. We have tremendous assets involved, and we’re poised for even more growth,” he stated. Despite the upbeat rhetoric, British Ambassador Peter Mandelson offered a more tempered perspective, describing the deal as “a starting point” rather than a definitive breakthrough.

Crypto Market Reacts – Bitcoin Breaks $100K, Altcoins Surge

The announcement sent shockwaves through the crypto market, with Bitcoin skyrocketing above $100,000 for the first time this year. Ethereum, XRP, and other altcoins also saw significant gains, as traders interpreted the trade deal as a positive catalyst for risk assets.

According to Nic Puckrin, a leading crypto analyst at The Coin Bureau, the rally was largely driven by renewed investor confidence. “This trade deal has provided a much-needed lifeline to risk assets like Bitcoin,” he explained. “But the rally occurred on relatively low volume, suggesting that the market may be vulnerable to sudden reversals.”

Puckrin also noted that despite the surge, the macroeconomic backdrop remains uncertain, with potential stagflation risks and ongoing trade tensions still weighing on market sentiment. “If the trade deal lacks concrete details, we could see profit-taking and increased volatility in the days ahead,” he warned.

Spot Bitcoin ETFs See Record Inflows – Is the Bull Run Sustainable?

As Bitcoin rallied, spot Bitcoin ETFs recorded substantial inflows, indicating strong institutional interest. BlackRock, Fidelity, and Invesco all reported elevated buying activity, as institutional investors sought to capitalize on the bullish momentum.

However, Puckrin cautioned that the rally may be short-lived without further policy clarity. “If the UK trade deal proves to be more rhetoric than substance, the market could correct sharply,” he said.

Meanwhile, Charles Wayn, co-founder of Galxe, believes that the deal could serve as a precursor to additional trade agreements, potentially setting the stage for renewed crypto bull runs.

“This agreement could be the first of several, and with more trade concessions, the bull market may revive,” Wayn said. “However, the crypto market is still at the mercy of broader economic conditions, and traders should be prepared for volatility.”

Market Outlook: Will Bitcoin Maintain Its Momentum?

While Bitcoin’s rise past $100,000 is a significant psychological milestone, analysts remain cautious. Despite the initial euphoria, the market remains vulnerable to downside risks, especially given the low trading volume and ongoing economic uncertainty.

For now, the crypto sector appears to be enjoying a renewed sense of optimism, but as Trump’s trade deal details emerge and the Fed’s monetary policy stance becomes clearer, the market could face another round of volatility.

Investors are advised to monitor key resistance levels at $105,000 and $108,000, as well as potential support at $95,000 in the event of a pullback. While the current rally has injected new life into the market, the sustainability of the uptrend remains uncertain in the absence of substantial economic improvements.