Bitcoin Surpasses $100K as Fed Holds Rates and U.S.-U.K. trade deal reached
Bitcoin has officially surpassed the $100,000 mark, reaching approximately $102,900 USD as of May 9, 2025. This milestone is attributed to renewed investor confidence following the announcement of a U.S.-U.K. trade deal, which has alleviated some economic uncertainties and bolstered risk asset markets. The deal includes significant tariff reductions, such as lowering U.S. tariffs on British car exports from 27.5% to 10% for up to 100,000 vehicles annually and eliminating tariffs on steel and aluminium imports. In return, the U.K. will reduce tariffs on U.S. beef and ethanol, among other concessions.
The rally has also positively impacted related equities; for instance, MicroStrategy’s stock has climbed to its highest point this year, reflecting the increased value of its substantial Bitcoin holdings.
Earlier this week the U.S. Federal Reserve held interest rates steady, opting not to hike further amid global economic crosscurrents. The Fed’s pause, coupled with warnings from Fed Chair Jerome Powell that new tariffs introduced by President Trump could drive up consumer prices and slow growth, underscored rising inflation risk.
The combination of a steady Fed policy and concerns about inflation and economic policy has reinforced the narrative of Bitcoin as “digital gold.” Back in Australia, market optimism is evident as well: at current prices Bitcoin is about A$150,000 per coin, and local investors are taking note. The Reserve Bank of Australia’s own policy outlook diverges (with a rate cut anticipated later this month), but the global trend of looking to crypto for stability in uncertain times is influencing Australian institutions and retail investors alike. For investors, Bitcoin’s resilience amid macro jitters suggests a maturing asset class – its rally reflects broader adoption and trust, potentially setting the stage for a more sustained bull market rather than a short-lived spike.
