The cryptocurrency market experienced a sharp rally following the signing of a trade agreement between the United States and the United Kingdom. On the back of the deal, Bitcoin (BTC) surpassed the $100,000 mark for the first time in three months, triggering a chain reaction across the market.
Market Reaction
According to CoinMarketCap, during the rally, Bitcoin briefly reached $104,000 before pulling back to the current level of $102,900. However, the main driver this time was Ethereum (ETH). After spending several weeks in the $1,800–$1,900 range, the second-largest cryptocurrency by market cap surged over 16% in 24 hours to $2,236 — a level not seen in more than two months. As a result, Ethereum’s market share increased to 8%.
According to analyst Rekt Capital, holding above $2,200 could bring Ethereum back into its long-term $2,200–$3,900 range.
U.S. Stock Indices Also Rise
U.S. stock indices closed the day higher. The Dow Jones gained 254.48 points (+0,62%) to close at 41,368.45. The S&P 500 rose by 0,58%, and the Nasdaq Composite was up 1,07%.
The Fear and Greed Index reached 70, indicating a dominance of greed in the market. The Altseason Index is at 27, pointing to moderate activity outside Bitcoin and Ethereum. Previously, we reported that Korean investors are anticipating an altseason in Q3.
Top Gainers Over the Past 24 Hours
Massive Short Liquidations, Activity Spike, and New Wallets
The sharp surge triggered a wave of liquidations. According to Coinglass, over the past 24 hours, short positions worth approximately $800 million were liquidated — the highest figure since November 2024. Long positions were liquidated for $22 million.
Data from Santiment shows that heightened FOMO among retail investors led to the creation of 344,620 new Bitcoin wallets in one day — the highest number since January.
Open interest in Bitcoin dropped by 0,20%, possibly indicating position closures and loss coverage. Meanwhile, Ethereum’s open interest jumped by 20%.
BTC also moved up to fifth place among all global assets by market capitalization, surpassing Amazon.
Analysts Warn the Rally May Be Short-Lived
Investor optimism was boosted by the trade deal between the U.S. and the UK — the first major agreement signed under President Donald Trump’s administration. The U.S. Treasury is now preparing for talks with China regarding potential new agreements.
“Tariffs on China can’t go above 145%. I believe they’ll decrease going forward,” Trump stated.
Previously, the start of trade wars was a major cause of market downturns.
Meanwhile, Santiment noted that a rapid rise driven by media hype can be a double-edged sword — it may attract new investors but could also trigger a correction if the market overheats.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
