LONDON: Bitcoin yesterday topped US$100,000 for the first time since February, as investors’ appetite for riskier assets grew after Britain and the US unveiled a trade deal.
“Now that the US appears more reasonable and concludes agreements with other countries, cryptocurrencies are on the rise again,” said Stephane Ifrah, analyst at crypto platform Coinhouse.
Bitcoin broke through the symbolic US$100,000 threshold for the first time in December, reaching US$109,241.11 on Jan 20 just a few hours before the inauguration of US President Donald Trump.
The Republican leader vowed to support crypto currencies during his campaign for a second White House term.
But a wave of US tariffs unleashed on countries around the world dampened financial markets, causing a wave of uncertainty.
Even though they were not directly concerned by the Trump tariffs, crypto currencies have a reputation for volatility and investors swiftly fled for safer havens such as gold.
The sector has also been dealt several blows amid scandals such as the collapse of the crypto currency $LIBRA, once backed by Argentine President Javier Milei.
The price collapsed after a handful of early investors decided to sell at a huge profit, causing colossal losses for the majority of those who purchased $LIBRA.
It also dragged down prices of other cryptocurrencies, including bitcoin.
Argentine prosecutors are reportedly examining whether Milei engaged in fraud or criminal association, or was in breach of his duties, when he praised the $LIBRA cryptocurrency on social media in February.
Also in February, Dubai-based cryptocurrency exchange Bybit reported that hackers stole US$1.5 billion worth of digital assets in what marked the largest crypto theft in industry history.
In early April, bitcoin dropped to US$75,000.
“Bitcoin is strong in line with the stock market,” said Charlie Morris, analyst with ByteTree.
“The UK trade deal is one good reason to be bullish because many more trade deals are likely to follow.”
In late April, the UK government published draft legislation aimed at regulating cryptocurrencies like bitcoin and ethereum, after the European Union introduced its own framework.
