Bitcoin was on fire over the weekend, peaking at $99,415 as bulls sought to break through the all-important $100k psychological barrier. During this advance, the value of every cryptocurrency collectively jumped over $3.10 trillion. A number of factors played into this increase, such as encouraging signs in international trade and steady institutional investment.
It was Thursday that sent the cryptomarket into a tailspin. This rally was created by the conclusion of the first trade agreement after Donald Trump’s Liberation Day oration. Bitcoin and many altcoins saw significant gains. This momentum towards the positive side was only compounded by the continued positive institutional buying activity.
All three Spot Bitcoin ETFs claimed a combined $142 million increase in assets on Wednesday alone. Weekly inflows reached $482 million. Year-to-date, these funds have brought in more than $5.7 billion in net inflows, a clear signal of strong investor confidence in Bitcoin.
Bitcoin and altcoins pumped significantly following the news that the U.S. and the United Kingdom reached a new trade agreement. The announcement stoked major bullish sentiment in the crypto markets. The U.S. agrees to ramp down tariffs on UK steel and UK automobiles. In exchange, the UK will repeal its proposed $800 million digital tax aimed at large American technology companies.
Additionally, upcoming meetings between U.S. and Chinese officials in Switzerland for trade discussions are raising hopes for de-escalation of tensions. Analysts believe these negotiations have the potential to continue to soothe and buoy the market.
"Global derivatives trading is a key driver of growth for Coinbase. Deribit is the platform of choice for global traders for Bitcoin and Ethereum options. Their platform has a strong operating history and is the only major independent company with similar DNA to Coinbase. They’ve not launched a token and have an AUM of $4B." - Spencer Yang, Core Contributor of Fractal Bitcoin.
Deribit has impressive AUM of $4 billion. It makes for an interesting counterpoint to other major exchanges as one of the leading platforms for Bitcoin and Ethereum options trading without launching its own token.
Expectations over future Federal Reserve interest rate cuts are a factor. The majority of analysts expect the first Fed rate cut to come this year, with ING expecting a cut in September. Such a move would potentially inject even more liquidity to drive investment into risk assets like Bitcoin. Bitcoin’s all-time high $109,300 is still the most important level investors should keep their eyes on.
