Bitcoin has once again found six-figure territory, soaring past US$100,000 to be trading around US$104,000 on Monday.
The cryptocurrency, which broke past US$100,000 in December, saw several deep reversals in the first few months of the year, finding a low of US$75,000 in April.
However, bitcoin is now more than 25 per cent up over the last month. According to Mena Theodorou, co-founder at crypto exchange Coinstash, bitcoin rose around 5 per cent after US President Donald Trump announced a broad trade deal with the UK aimed at easing tariffs.
“This, paired with the news that two US states have green-lit state-level bitcoin reserves, has sparked optimism across global financial markets, boosting risk assets like equities and oil,” Theodorou said.
Meanwhile, traditional safe-haven gold has edged lower as investors shift towards a more risk-on approach.
Theodorou pointed out that bitcoin’s notable reversal from April – when new tariff announcements drove investors into safe haven assets – shows how sensitive market sentiment is to macroeconomic developments.
“Investors are certainly aiming for continued bullish momentum, with the hope that bitcoin will reach a new all-time high in the coming months and consistently remain above the US$100,000 barrier,” he said.
“This may become a reality if Trump provides more details about the additional trade deals he is reportedly working on, and more US states successfully pass legislation to establish state-level bitcoin reserves.”
Mark Hiriart, head of sales at Zerocap, agreed that the US’ pro-crypto stance at the government level is keeping sentiment above water.
“With two US states, Arizona and New Hampshire, recently passing bills for state bitcoin reserves and Trump’s new trade agreement with the UK potentially scrapping the 10 per cent blanket tariff on imports, investors are seemingly optimistic,” Hiriart said.
But he also pointed out that bitcoin is not the only crypto asset to be seeing strong gains.
Namely, Ethereum is up a notable 63 per cent over the last month, having surpassed the US$2,000 level for the first time since March.
“Solana was also up 11 per cent, with community sentiment bullish across the board as the US begins to provide more clarity around crypto regulation,” Hiriart added.
“In another win for investors, US banks are now permitted to buy and sell customers’ crypto assets, suggesting that wider adoption of digital assets may well be just around the corner.”
This, he noted, is a promising sign for local investors, stoking hopes that Australians may see more clarity from the government around regulation in the near future.
“With demand and price momentum continuing their upward trend, the next few days will be critical for bitcoin’s trajectory, particularly if it breaches US$110,000,” Hiriart concluded.
