by Suvashree Ghosh

Bitcoin approached the $100,000 mark for the first time since February with US President Donald Trump expected to announce a trade agreement with the UK. 

The largest digital asset rose as much as 2.9% to $99,621 on Thursday, as most major tokens climbed higher. Ether — the second-largest token — soared as much 8% to $1,943. 

The moves extend a rally that began Wednesday after announcements that the US will hold trade talks with the Chinese government in Switzerland, signaling a possible de-escalation in a tariff standoff between the world’s two largest economies. On Wednesday night, Trump in a social media post teased a “major trade agreement” with an unnamed country. The deal is expected to be with the UK, according to reports. 

Bitcoin hit a record of $109,241 on January 20 bolstered by optimism around Trump’s plans to nurture a friendly environment for US crypto operators, unwinding a crackdown overseen by the previous administration under Joe Biden. Trump’s tariff announcements have since weighed on cryptocurrencies. Bitcoin fell roughly 32% from its all-time high to below $75,000 in early April.

Psychologically significant round-numbers such as the $100,000 mark “often prompt short-term profit-taking,” said Rachael Lucas, a crypto analyst at BTC Markets, adding that “a period of consolidation may follow as traders realize gains” should Bitcoin reclaim that level. 

Ether has been languishing of late over concerns about its direction and rising competition among blockchain operators. A recent software upgrade that aimed to make the Ethereum network more competitive was seen as doing little to bolster Ether’s price, but Thursday’s surge lifted the token to its highest intra-day level since April 2. 

Copyright Bloomberg News