- Trump’s tariffs ignite crypto rally; UK pact elevates BTC above $3T amid shifting trade policies.
- BTC jumps 8% post U.S.-UK tariff talks; altcoins follow as investors parse geopolitical signals.
The cryptocurrency market crossed the $3 trillion threshold this week, a move timed closely with U.S. trade policy updates and ongoing negotiations between Washington and London.
The shift underscores a growing link between digital assets and international economic strategies, as markets react to geopolitical developments with heightened sensitivity.
Tariff Policies and Market Reactions
President Trump’s recent tariff announcements—including a 10% baseline levy on global imports and targeted rates up to 25% on goods like steel and automobiles—have reshaped trade discussions. These measures, introduced in early April, prompted immediate responses from trading partners.
Among them, the U.K. has secured preliminary progress, with Prime Minister Keir Starmer confirming a pending joint statement on tariff reductions. The news coincided with upward momentum in crypto valuations, suggesting investors view eased trade barriers as a catalyst for capital movement into risk-sensitive assets.
Bitcoin (BTC) and Ethereum (ETH) led gains, rising 8% and 12% respectively over five days. Altcoins like Solana (SOL) and Chainlink (LINK) mirrored the trend, reflecting broader optimism tied to cross-border trade adjustments. ETHNews analysts note that crypto markets now respond to diplomatic signals with a speed once reserved for traditional equities or currencies.
The correlation between trade policy and crypto valuations highlights a structural change in how markets process information. Where digital assets once functioned primarily as alternatives to fiat currencies, they now align more closely with macroeconomic shifts. Institutional adoption has amplified this pattern, as hedge funds and corporate treasuries increasingly treat crypto as part of diversified portfolios.
This alignment is particularly visible in regions with U.S. trade negotiations. India, Israel, Japan, and South Korea are reportedly in advanced talks with Washington, each seeking exemptions from Trump’s tariff framework.
Not all geopolitical developments signal stability. U.S.-China relations remain strained, with reciprocal tariffs on electronics, renewable energy components, and agricultural goods exceeding 140%. High-level talks between the two nations are scheduled in Switzerland this week, though expectations for breakthroughs remain low. Crypto markets have shown muted reactions to this uncertainty, possibly indicating investor caution or a wait-and-see approach.
The U.K. deal, expected to finalize within days, may set a template for other bilateral agreements. If successful, it could accelerate capital inflows into crypto as traders position for reduced trade barriers. However, sustained growth hinges on broader diplomatic outcomes—particularly whether competing economic blocs can avoid escalation.
Bitcoin is currently trading at $102,656, slightly down -0.59% on the day. Despite this minor pullback, BTC has gained +6.34% over the past week and an impressive +34.66% over the past month, fueled by sustained inflows into spot Bitcoin ETFs, which have added over $3.5 billion in just three weeks.
Year-to-date, Bitcoin is up 10%, and on a one-year basis, it’s risen 67.93%, reinforcing its long-term bullish momentum. The current market cap stands at $2.04 trillion, with daily volume at $70 billion, signaling strong liquidity and investor engagement.
Technically, BTC is respecting an ascending channel and recently broke out of a bull flag pattern, suggesting continuation to the upside. Support is found around $98,000–$100,000, while resistance lies near the $104,000–$106,000 zone. A whale trader has also opened significant buy orders in the $90,600–$92,000 range, indicating strong institutional accumulation on dips.
From a macro-fundamental perspective, recent U.S. policy moves to raise $84 billion in new treasury reserves—some rumored to target crypto markets—combined with continued ETF inflows and geopolitical hedging, are driving interest in BTC as a long-term asset. Moreover, the Crypto Fear & Greed Index has flipped to “Greed”, indicating elevated market optimism, though corrections remain possible.
