With tariffs, bitcoin returns to the $100,000 level

The price of Bitcoin, the most well-known and most valuable cryptocurrency on the market, recovered to $100,000 for the first time since late January, after US President Donald Trump announced a trade deal with the United Kingdom and plans to meet with Chinese President Xi Jinping in Geneva later this week.

Bitcoin rose 4.62% to $101,537.70 on Thursday, marking its highest level since January 31, when it reached $102,424.20 per unit.

The world's largest cryptocurrency has gained 19.23% since "Liberation Day" in the United States on April 2. It has climbed 8.53% for the year and is still far from the all-time high close above $106,157 reached in January, down 4.87%.

Cryptocurrency prices generally advanced on Thursday, following Bitcoin's gains as risk appetite improved.

The CoinDesk Market Index, which tracks dozens of digital assets, including bitcoin, rose 6.8 percent.

Another cryptocurrency showing positive performance is Ethereum, the second-largest virtual currency by market capitalization, which rose 18.01% on Thursday to $2,175.13.

Dogecoin joins this list by climbing 12.48% to $0.19, followed by Cardano by rising 12.12% to $0.75, Solana by growing 9.92% to $160.73, XRP by 7.62% to $2.30, and Litecoin by 5.07% to $94.18.

According to analysts, the news of the United States announcing a trade agreement with the United Kingdom, with whom the country has been seeking to reach such an agreement since Brexit, was positive.

"Stock markets are showing positive movements following the Donald Trump administration's plan to rescind some restrictions governing semiconductor exports to other countries by chip manufacturers, although measures targeting China are expected to remain in place," say experts at Monex Casa de Bolsa.

They added that another factor driving the markets is the news of a trade agreement between the United States and the United Kingdom, which focuses on reducing tariffs on automobiles and steel.

Trump said he would reduce tariffs on British cars, aluminum, and steel, but would maintain a base tariff of 10 percent. In return, the United Kingdom will expand market access for US exports, such as ethanol, beef, and soft drinks.

"Finally, US and Chinese officials will meet next weekend to discuss trade issues; investors expect tariffs to be negotiated downward to avoid damaging economic growth," they explained.

Ups and downs with Trump

The outbreak of the tariff crisis on April 2, "Liberation Day," under Trump, led to widespread market declines, and in the case of Bitcoin, the decline took the asset to a low of $74,400.

Bitcoin first touched $100,000 last December thanks to a remarkable bullish rally that began with Donald Trump's election victory in early November.

Before the Republican victory, the digital asset was trading around $67,000.

Market participants welcomed the US-UK agreement, but cryptocurrencies appear to be ignoring the Fed's warning, which again left the rate unchanged at 4.25-4.5 percent.

The central bank warned that it sees rising risks linked to both unemployment and inflation, fueling fears of a stagflationary scenario in the world's largest economy.

Given this scenario, some analysts see a favorable outlook for Bitcoin. Zach Pandl, Director of Research at Grayscale, argues that a potential stagflation could be "positive" for the flagship cryptocurrency.

According to the analysis, inflationary and low-growth environments tend to hurt traditional assets, but benefit those perceived as stores of value.

"Bitcoin didn't exist during previous stagflations, but it can be understood as a modern form of digital gold, scarce and increasingly recognized as a store of value," he concluded. (With information from Bolsamania)