Big Bitcoin Jump: What Do the US-UK Trade Agreement and Interest Rate Cut Hopes Mean?

Big Bitcoin Jump: Is This the Start of a Major Bull Run?

Along with other major altcoins and stocks, Bitcoin saw a significant upswing on Thursday. A tentative trade agreement between the United States and the United Kingdom, early indications of revived institutional demand, and rising expectations of interest rate decreases all prompted traders to react, giving international markets new hope. The action was taken in spite of the Federal Reserve’s decision on Wednesday to maintain interest rate stability.

Is a Fed Rate Cut Imminent? Futures Market Says July Is Likely

Futures markets are already factoring in a 70% likelihood of a rate decrease in July, despite Fed Chair Jerome Powell’s refusal to commit to a schedule for possible easing. A 95% chance of at least one cut by October is displayed by CME’s FedWatch program. Powell was criticized more harshly by President Donald Trump on Thursday, who called him a “fool” and said that lowering interest rates would be like jet fuel for the economy.

Bitcoin Rockets Past $103K: Is This Just the Beginning?

Bitcoin increased more than 6% in a day, reaching a peak of $103,460 early Friday in Asia. After breaking beyond $2,200 for the first time since March, Ethereum is now ahead of altcoins by 20%. According to a report from QCP Capital, the flow shows rising optimism as traders brace for more gains. It also highlights the high demand for call options that expire in May and June. The company did warn that pricing confirmation was still required, though.

Until Bitcoin can close above the $100,000 handle on the daily, we see limited reward in chasing momentum at current levels.

QCP Capital

Trump Announces UK Trade Deal: Economists Question Its Impact

President Trump made his first announcement since taking office on Thursday, calling it a major trade agreement with the United Kingdom. Analysts were dubious about the agreement’s potential economic effects, despite the fact that it contains modest tariff changes and quota relief for British steel and car exports.

The economic reality of this is basically… very, very small,

economist Justin Wolfers

U.K.-U.S. Trade Agreement Sparks Mixed Market Reactions: Bitcoin Bulls Take Notice!

The U.K.-U.S. trade agreement is just a framework, according to Tapas Strickland, Head of Market Economics at NAB, one of the nation’s four major banks. Nevertheless, the possibility of reducing trade tensions was welcomed by markets. The S&P 500 was up 0.6%, and the Nasdaq was up 1.1%, both of which were strong gains for U.S. equity indexes. The more subdued attitude in London was reflected in the 0.3% decline in the FTSE 100.

The base case for Bitcoin is getting stronger, according to ARK Invest’s April research. The report noted a drop in exchange balances to 14%, the lowest level since 2018, and a net inflow of 29,800 BTC to U.S. spot ETFs, the most since November.

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