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Bitcoin soared to $104,000 amid a new trade deal between the US and the UK

The price of bitcoin has risen sharply to a record high of $104,000 after the announcement of a new strategic trade agreement between the United States and the United Kingdom. This is reported by the Coingecko portal, "Komersant Ukrainian" reports

Analysts believe that the growth is due to increased investor confidence in digital assets amid strengthening economic relations between the two countries. The new agreement is expected to boost financial innovation and encourage the introduction of cryptocurrencies into international trade.

According to experts, the rise in the value of bitcoin may also be the result of increased institutional demand, in particular from banks and funds that view cryptocurrency as a “hedge” asset in times of economic uncertainty.

Market participants are currently closely monitoring further developments, as bitcoin is once again at the center of global financial events.

However, in recent months, there has been a significant decline in the price.

The main reasons for bitcoin’s decline:

• Massive sales by major players: In August 2024, there was a significant decline in the price of bitcoin, partly due to sell-offs by large cryptocurrency holders such as Mt. Gox and the German government. These actions caused an increase in market supply and pressure on the price.
• Global economic factors: Interest rate hikes by the Bank of Japan and fears of a recession in the United States have led to a decrease in investor appetite for risky assets, including cryptocurrencies.
• Correlation with stock markets: Analysts, in particular from Standard Chartered, note that bitcoin is closely correlated with the dynamics of other risky assets, such as shares of technology companies. The decline in these markets has also affected the value of bitcoin
• Technical factors: Failure to break through resistance levels and increased sales volumes from short-term traders contributed to a further decline in the price.

Forecasts for the future:

Experts believe that the recovery of bitcoin’s price will depend on the stabilization of global financial markets and positive news in the cryptocurrency sector. In particular, the possible introduction of favorable regulatory changes or increased institutional interest may support the price of bitcoin in the future.