Bitcoin, Ethereum Market Rally After Trump Administration Inks Trade Deal With the UK

The cryptocurrency market rallied sharply on Thursday after the Trump administration inked a trade deal with the United Kingdom.

The cryptocurrency market experienced a sharp rally on Thursday, with Bitcoin price action exceeding the $100,000 milestone for the first time in three months. This surge in Bitcoin price and broader market uptick was catalyzed by the Trump administration's signing of its first major trade agreement with the United Kingdom.

What Happened: Bitcoin breached the crucial psychological price point of $100,000, leading to a 59% increase in trading volume over the last 24 hours. However, this rally was quickly outpaced by Ethereum, which broke out of a seven-week period of sideways trading within the $1,800 range to reach a high of $2,200—a level not seen in over two months.

This rally also pushed Ethereum's market dominance past 8% for the first time in over a month.

The massive rally also led to bearish leveraged traders incurring significant losses, wiping out nearly $800 million in short positions.

Interestingly, Bitcoin's Open Interest dropped 0.20% in the last 24 hours, suggesting that the rally might have been driven by short covering. Conversely, Ethereum's Open Interest experienced a substantial surge of 20%.

The cryptocurrency market displayed "Greed" sentiment, according to the Crypto Fear and Greed Index on Thursday morning.

Top Gainer (24-Hours)

The global cryptocurrency market capitalization increased by 6.91% in the last 24 hours to reach $3.22 trillion.

Stocks also advanced on Wednesday. The Dow Jones Industrial Average rose 254.48 points, or 0.62%, to end at 41,368.45. The S&P 500 lifted 0.58% to close at 5,663.94, while the tech-heavy Nasdaq Composite gained 1.07% to finish at 17,928.14.

The risk-on sentiment was further amplified as the Trump administration signed its first major trade agreement with the UK, building confidence about further global deals. This follows reports of Treasury Secretary Scott Bessent's meeting with top Chinese officials for trade negotiations.

See More: Best Cryptocurrency Scanners

Analyst Notes: Cryptocurrency analytics firm Santiment pointed out that the persistent bullish sentiment could be a "double-edged sword" for upcoming price changes.

"On one hand, retail FOMO can add a bit of extra fuel to this rally as major media outlets spam Bitcoin's 3-month milestone and bring in many new entries to the space. On the other hand, we typically see rallies put on the brakes when there is an overwhelming amount of calls related to 'higher' or 'above,'" the firm stated.

🥳 Cryptocurrency has continued its rally, with Bitcoin breaching the all-important $100K psychological resistance for the first time since Feb. 3rd. Sentiment is quite bullish at the moment, which can be a double-edged sword for upcoming price movement from here.On one hand, … pic.twitter.com/iGcLsY1cxN

Cryptocurrency analyst and trader Rekt Capital highlighted the significance of $2,200 as he discussed Ethereum's stratospheric gains during the day.

"Reclaim ~$2200 and Ethereum will resynchronise with its $2200-$3900 macro range," the analyst said

$ETHThat was quick

As such, in order to resync with its $2200-$3900 Macro Range, we'll likely see a move to at least $2800

Reclaim ~$2200 and Ethereum will resynchronise with its $2200-$3900 Macro Range#ETH #Crypto #Ethereumhttps://t.co/sQYXDeG1ZBpic.twitter.com/ecJBvDkpQ6

Shutterstock: Yalcin Sonat