Bitcoin Surges Past 100K as U.S.-UK Trade Agreement Eases Geopolitical Tensions

On May 9th, significant developments emerged in international trade negotiations, particularly between the U.S. and the UK. President Trump and Prime Minister Starmor formalized a preliminary trade accord, addressing key non-tariff obstacles. This includes a suspension of UK tariffs on aluminum and steel, alongside a proposed reduction of U.S. tariffs on automobiles to 10% for UK imports. Notably, the UK has also rescinded its 2% digital tax on American e-commerce entities. While this agreement signals a reduction in trade friction, it primarily establishes a framework without granting substantial concessions in sensitive sectors, maintaining a 10% baseline tariff, which leaves the market’s future direction ambiguous.

The positive sentiment from these negotiations has triggered a notable uptick in Bitcoin, which recently surpassed $100,000, peaking at $104,000 with an impressive 7% intraday gain. Analysts highlight that easing geopolitical tensions from U.S.-China dialogues could further bolster market stability. However, caution is advised as the surge may attract overzealous buying. Investors are encouraged to await a potential market correction before entering positions, while closely monitoring upcoming economic indicators such as next week’s CPI and PPI, ensuring a strategic and risk-aware asset allocation.