Bitcoin surged past the $100,000 threshold on Thursday for the first time since early February, buoyed by optimism following a landmark trade agreement between the United States and the United Kingdom — signalling a potential thaw in President Donald Trump's global trade confrontations.

The world’s leading cryptocurrency climbed as high as $101,329.97 by midday, marking a 4.7 per cent gain on the day. Although still below its January peak of over $109,000, the latest rally brings bitcoin back into positive territory for the year after a turbulent spring.

Ether — the second-largest cryptocurrency linked to the Ethereum blockchain — also posted strong gains, jumping more than 14pc to $2,050.46, its highest level since March.

The sharp rebound follows an announcement by President Trump and British Prime Minister Keir Starmer, who unveiled a so-called “breakthrough deal” aimed at reshaping transatlantic trade. Under the agreement, the US will maintain a 10pc tariff on UK goods, while Britain will reduce its tariffs to 1.8pc from the previous 5.1pc and open up its market further to American imports.

The accord is the first significant diplomatic development since Trump’s return to the White House in January, during which he reignited trade tensions by imposing sweeping tariffs on key trading partners, unsettling global markets.

“The retaking of $100,000 must go down as one of bitcoin’s more formidable feats,” said Antoni Trenchev, co-founder of crypto trading platform Nexo. “It is a reminder that buying peak fear — just last month bitcoin was languishing around $74,000 — can be exceptionally lucrative.”

Trenchev noted that long-term holders, defined as those retaining bitcoin for at least 155 days, were continuing to accumulate the asset, offsetting recent profit-taking by short-term investors. “The speed of the rebound amid renewed risk appetite suggests that a retest of $109,000 may soon be in play,” he added.

Reserve token push and institutional flows

Bitcoin’s advance has also been underpinned by other macroeconomic and policy developments. Earlier in the week, President Trump listed several digital assets as “strategic reserve tokens,” a move interpreted by analysts as a step toward deeper integration of cryptocurrencies into the financial system — despite initial delays in pro-crypto reforms earlier this year.

Between February and April, bitcoin and other cryptocurrencies came under pressure as the administration’s policy direction remained ambiguous and investors rotated into safer assets amid tariff-related volatility in global equity markets.

According to Joel Kruger, a market strategist at fintech firm LMAX Group, recent institutional inflows into bitcoin-focused exchange-traded funds (ETFs), alongside geopolitical easing and signs of additional stimulus measures from China, have lent further support to bitcoin's climb.

"Risk sentiment has returned, and crypto is once again benefiting as a high-beta asset class," said Kruger.

While bitcoin has now risen by nearly 20pc since late April, ether and other altcoins continue to lag. Ether, in particular, remains more than 50pc below its late-2024 highs, a reflection of the uneven recovery across the digital asset space.

Traders and analysts alike are now watching closely to see if bitcoin can sustain its momentum and stage a fresh attempt at breaching the previous record set earlier this year.