Bitcoin surged to $98,933 on May 8, rising 2.6% in just 24 hours, as markets rallied on renewed optimism around U.S. trade policy. The spike followed a high-profile announcement from President Donald Trump, who teased a “major trade deal” set to be unveiled at a press conference in the Oval Office on May 9.
Trump’s Trade Deal Sparks Market Optimism
Posting on Truth Social, President Trump described the upcoming deal as one made with a “big” and “highly respected” country, calling it “the first of many.” While no specific nation was mentioned, The New York Times reported that sources familiar with the matter believe the deal will be with the United Kingdom.
Traders interpreted the announcement as a bullish signal for global markets, especially after months of tariff-induced volatility. Trump’s previous tariff hikes particularly against China have rattled both equity and crypto markets, contributing to Bitcoin’s dip to $74,500 in April. The promise of renewed international cooperation appears to be reversing that trend.
Trade and Macro Tailwinds Fuel Bitcoin’s Ascent
Bitcoin last touched its all-time high of $109,000 on January 20, just ahead of Trump’s second inauguration. The asset’s retreat in the wake of April’s tariff escalations was swift, but it has since rebounded on a combination of factors:
- ETF inflows strengthening demand
- A weaker U.S. dollar improving BTC’s relative appeal
- Improved investor sentiment on potential trade resolutions
The announcement also comes ahead of a scheduled meeting in Switzerland between U.S. Treasury Secretary Scott Bessent and top Chinese officials the first formal diplomatic effort to ease the tariff standoff. Markets are watching the dialogue closely, as tensions between the two economic superpowers have weighed heavily on risk assets in recent weeks.
Federal Reserve Holds Rates Amid Policy Uncertainty
Adding to Bitcoin’s bullish case was the Federal Reserve’s May 7 decision to hold interest rates steady at 4.25%–4.50%. While Fed Chair Jerome Powell noted that inflation remains above target, he cited the U.S. economy’s resilience and robust labor market as reasons to pause further tightening.
Powell acknowledged “heightened uncertainty” surrounding Trump’s trade policies, signaling that the Fed remains cautious while geopolitical developments unfold.
Bitcoin Targets $100K Breakout
With trade tensions potentially easing and macro conditions stabilizing, Bitcoin is once again testing a major psychological level at $100,000. Analysts believe that a confirmed breakout above this barrier could trigger a new wave of institutional inflows and retail interest, especially if trade agreements reduce global market frictions.
For now, all eyes are on Trump’s May 9 press conference, where further details about the trade agreement could set the tone for Bitcoin’s short-term trajectory.
