The price of bitcoin has been trading above $100,000 for the first time since January after a US-UK trade deal revealed on Thursday prompted cautious market optimism.
After a surge in the price yesterday, from about $97,000 to $103,000, the Bitcoin price was up by 0.1 per cent for the session at $103,271.80 by late afternoon today.
This took 2025 gains to around 10.5 per cent and sees the leading crypto at its highest level since 22 January when it traded at around $105,559.
January’s peak was followed by an extended period of losses for investors in bitcoin, which fell as low as $75,000 by early April.
It has recovered since then thanks to regulatory tailwinds, high volumes of ETF flows and, more recently, signs of easing trade tensions.
The rally has also been seen in other major cryptocurrencies such as Ethereum, which is up 7 per cent for the day but down by a third since the start of the year at $1,770.31.
The price of bitcoin is above £100,000 for the first time since January
Matt Basi managing director of London Capital Group also highlighted falling global interest rates and ‘renewed institutional interest’ in helping to drive bitcoin higher.
He said: ‘With various states and governments opening up to adding the digital asset to their reserves, we could see the continuation of the rise in ‘digital gold’.
‘It’s got about 10x to go from here to catch up with the market cap of the physical stuff…’
Bitcoin’s price is highly volatile and those backing it need to be aware that it can take large tumbles very quickly.
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Simon Peters, crypto analyst at eToro, said the $100,000 benchmark is important for bitcoin because it has ‘acted as a resistance level previously’.
He said: ‘We saw substantial selling when $100,000 was reached for the first time back in November 2024. The bitcoin price dropped sharply to $90,000 in a matter of days.’
Peters thinks its ‘possible’ a similar sell-off will take place again, ‘but this will be short term’.
He added: ‘The bitcoin price should break and stay above $100,000 going forward into the second half of this year and early next year, ultimately leading to a new all-time high and the peak of the crypto bull market.
‘Global liquidity – essentially how much money is available in the global economy and a metric which the bitcoin price closely mirrors – is forecast to increase throughout the year, and interest rates globally should continue to come down, contributing to looser financial conditions.
‘Depending on what the bitcoin price is when the crypto bull market peaks – for example $150,000, $200,000, $250,000 – if we see a big drawdown in the year that follows, like 2018 and 2022, then there is a chance we could see $100,000 again, but this would be as the major bottom or end of the ensuing bear market in my opinion.’
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Read More: Bitcoin breaks above $100,000 as US-UK trade deal sparks fresh optimism