Bitcoin pushed toward $100,000 on Thursday, driven by positive sentiment surrounding potential Federal Reserve rate cuts and a fresh trade deal announcement. Dogecoin (DOGE) and Cardano’s ADA led the rally, gaining 5% and 4%, respectively, while Ethereum (ETH), Solana (SOL), and XRP saw modest 2%-3% increases. The CoinDesk 20 Index, which tracks the top digital assets, rose by 2.2%.
The market boost came after former President Donald Trump hinted at a major trade deal with a “highly respected country,” later confirmed to be the United Kingdom. This raised expectations that the U.S. might be de-escalating its tariff tensions, which have weighed heavily on global markets.
At the same time, the Federal Reserve’s decision to hold rates steady, while anticipated, fueled further speculation about upcoming rate cuts. The CME FedWatch Tool now indicates a 55% chance of a 0.25% rate cut in July, with 100 basis points of easing expected by the end of the year.
“Bitcoin’s push toward $100K comes as traders recalibrate their expectations, now anticipating easier monetary policy in the second half of 2025,” said Semir Gabeljic, head of Pythagoras Investments. “The potential for a Fed rate cut is shifting investor sentiment.”
Despite the optimism, some analysts warned of deeper risks. Gabe Selby from CF Benchmarks noted the potential for stagflation—an environment of rising inflation paired with economic stagnation and increasing unemployment. He argued that the Fed may face mounting challenges in managing this delicate balance.
“While the Fed is likely to cut rates, doing so too late could exacerbate economic difficulties,” Selby said. “Bitcoin, however, continues to benefit from market uncertainty, as it becomes increasingly seen as a safe haven.”
Bitcoin’s rise is also reflecting a shift toward institutional adoption. U.S. spot bitcoin ETFs, including BlackRock’s IBIT, have seen record inflows, with $4.3 billion added in just the past month.
“Bitcoin’s upward trajectory is a clear indication that institutional investors are viewing it as a crucial part of their portfolio in these uncertain times,” said Jupiter Zheng of HashKey Capital.
