TLDR
Bitcoin climbed to $98,933 on May 8, rising 2.6% in 24 hours
Trump announced a “major trade deal” press conference with a “big” country (likely UK)
BTC reached an all-time high of $109,000 in January before falling to $74,500 after US-China tariffs
Treasury Secretary Scott Bessent will meet with Chinese officials in Switzerland
ETF inflows have crossed $3 billion in the past two weeks
Bitcoin price is approaching the $100,000 level as markets react to President Donald Trump’s announcement about an upcoming trade deal. The cryptocurrency jumped from $95,700 to $99,400 within eight hours of Trump’s social media post.
Trump revealed on May 8 that he would host a press conference the following day to announce a “major trade deal” with a “big” and “highly respected” country. Though he did not name the nation, The New York Times reported it is expected to be the United Kingdom.
The news sparked a rally in the crypto market. Bitcoin reached $98,933, rising 2.6% in 24 hours. Ethereum also saw gains, jumping 6% on the day.
Bitcoin $BTC now trading at 99k after Trump teased a big trade deal with a “major” country on Truth Social💥
Big announcement today at 10am EST 🚀 pic.twitter.com/eX10PH5KgS
— Trader Edge (@Pro_Trader_Edge) May 8, 2025
This positive movement comes after a period of volatility for Bitcoin. The cryptocurrency had reached an all-time high of $109,000 on January 20, shortly before Trump’s inauguration.
However, Bitcoin experienced a sharp decline after the US raised tariffs on China in April. The price dropped from over $88,000 to a low of $74,500.
Market Recovery Factors
Several factors have contributed to Bitcoin’s recent recovery. The Federal Reserve’s May 7 decision to hold interest rates between 4.25% and 4.50% provided some relief to markets.
Fed Chair Jerome Powell cited “heightened uncertainty” due to Trump’s trade policy but emphasized the economy’s resilience and low unemployment as reasons to maintain current rates. Powell did acknowledge that inflation remains above target.
Another positive development for markets is Treasury Secretary Scott Bessent’s upcoming meeting with Chinese officials in Switzerland. This marks the first formal attempt to ease tensions following mutual tariff hikes in April.
The meeting could potentially lead to improved US-China relations, which would be welcome news for markets that have been concerned about trade tensions.
Bitcoin’s upward momentum has also been supported by substantial inflows into spot Bitcoin ETFs. These inflows have exceeded $3 billion over the past two weeks, showing continued institutional interest in the cryptocurrency.
Mixed Market Sentiment
Market sentiment remains mixed regarding the impact of Trump’s announcement. Some analysts suggest the recent price movement could be market participants front-running the news, which might lead to a “sell-the-news” event after the announcement.
Crypto influencer Loma expressed skepticism, suggesting that Trump was “blatantly manipulating the markets higher.”
For Bitcoin to establish a sustained uptrend above $100,000, buyers would need to defend and maintain this psychological level. Until Trump’s formal announcement, market predictions remain uncertain.
Bitcoin was trading at $98,914 as of the latest update, with increased volatility expected around the time of Trump’s press conference.
With macro conditions stabilizing and momentum growing, a breakthrough above $100,000 appears achievable in the coming days. Traders are watching closely as Bitcoin tests this key psychological threshold.
