Bitcoin rose beyond $100,000 Thursday (May 8) for the first time in three months.
As Bloomberg News reported, this increase was driven by anticipation for a relaxation of global tariff-related tensions following a new trade deal.
The price of bitcoin hit a record $109,000 in January on the inauguration of President Donald Trump. It later fell by up to 30% when Trump’s tariffs led to a market downturn.
“It just speaks to the large amount of demand for digital assets in the industry, and especially bitcoin,” Cosmo Jiang of Pantera Capital told Bloomberg. “There are just more and more buyers out there. We are also seeing the benefit of digital assets being digital can’t be tariffed. They are also a non-sovereign store of value. In times of economic stress, digital assets benefit.”
Trump on Thursday announced an agreement with the British government. While still being hammered out, this deal would see the U.K. fast-track American exports through customs while lowering barriers on agricultural, chemical, energy and industrial exports.
The crypto sector had championed Trump on the campaign trail and has enjoyed the president’s support since he took office, despite some early hiccups.
At the same time, the Trump family’s ventures into the crypto world have alarmed Democrats, who warn that these businesses represent a conflict of interest.
“The launch of a stablecoin by Trump’s World Liberty Financial and a substantial investment deal with a foreign entity have intensified scrutiny, with critics arguing that the legislation could inadvertently benefit Trump’s personal financial interests,” PYMNTS wrote earlier this week. “As their concerns come to a head, Senate Democrats introduced Tuesday the End Crypto Corruption Act, aiming to prohibit federal officials and their families from investing in or endorsing digital assets.”
Meanwhile, the Senate was set to vote Thursday on the GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act, lays out a comprehensive set of standards for the issuance, backing and operation of payment stablecoins.
This legislation would require stablecoin issuers to obtain licenses, with oversight decided by their size. Entities with assets of less than $10 billion would be regulated at the state level, while larger issuers would be governed by federal regulators.
“Even if stablecoins are the preferred medium for a lot of criminal activity, creating a regulated environment where these companies can operate in conjunction with law enforcement is probably a positive,” Dan Boyle, partner at Boies Schiller Flexner, told PYMNTS in April.
