Bitcoin Breaks $100: Trump, the Fed, and State Adoption Fuel a New Rally

Bitcoin Breaks $100: Trump, the Fed, and State Adoption Fuel a New Rally

Bitcoin's price has broken the $100.000 mark, driven by the Federal Reserve's stable monetary policy, a strategic trade agreement from Trump, and the official adoption of the cryptocurrency by several US states.

Bitcoin has broken the coveted $100.000 mark, cementing itself as the benchmark digital asset in the Web3 era. At the time of writing, the leading cryptocurrency is trading at around $101.300. 

Bitcoin's bullish momentum is no coincidence, but rather the result of a strategic combination of economic, political, and institutional factors in the United States. 

First, the Federal Reserve (Fed) decided to keep interest rates stable at its May 7 meeting, creating a favorable environment for risk assets like Bitcoin. In parallel, President Donald Trump pushed through a key trade deal with the United Kingdom, which has strengthened positive market sentiment. Furthermore, states like Arizona, New Hampshire, and Oregon are integrating Bitcoin into their state reserves, granting unprecedented institutional backing to the leading cryptocurrency. 

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The convergence of these elements has opened a new chapter for Bitcoin, one that not only reflects growing global recognition but also offers strategic opportunities for investors and market participants.

Federal Reserve monetary policy: stability that drives risk appetite

The Federal Reserve's current stance is crucial to understanding Bitcoin's current price rally. The Fed has decided to keep interest rates within a stable range of 4,25% to 4,50%, a measure that seeks to balance the fight against inflation with the need to sustain employment.

Fed Chairman Jerome Powell has indicated Although inflation shows signs of slowing, economic uncertainty still warrants caution. This scenario creates an environment conducive to investors seeking assets with higher return potential, such as cryptocurrencies.

Bitcoin has responded to this situation by surpassing $100, reflecting a preference for assets that combine moderate risk with expectations of future stimulus. 

Bitcoin (BTC) price in the last few hours.
Bitcoin (BTC) price in the last few hours.
Source: CoinMarketCap

However, some analysts warn that prolonged rate stability could lead to temporary corrections, while a potential rate cut could catapult Bitcoin beyond its current all-time high and even reach values ​​as high as $250.000 by the end of the year, thanks to increased liquidity and institutional appetite. 

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Trump's trade deal with the United Kingdom

President Donald Trump has also been a key player in Bitcoin's recent surge, especially after announcing a significant trade agreement with the United Kingdom. This bilateral pact, the first after months of tariff tensions, seeks to foster more fluid and predictable trade between the two economies. More details about this agreement will be revealed throughout the day, but the initiative is already impacting economic confidence, mitigating some of the uncertainty that has plagued the markets.

This agreement is expected to be just the beginning of negotiations with other powers such as Japan and the European Union, raising expectations for a more stable global trading environment. This context has increased appetite for risky assets, benefiting Bitcoin and other cryptocurrencies. 

Furthermore, it should not be forgotten that the Trump administration is promoting a more open and favorable regulatory framework for financial innovation, with the vision of positioning the United States as a global hub for the development and innovation of the crypto industry.

State Bitcoin Adoption: New Hampshire, Arizona, and Oregon Lead the Way

The official adoption of Bitcoin by US states is a phenomenon that provides solid institutional support and sets a historical precedent. 

New Hampshire Arizona stands out for its leadership, as the first state to pass a historic bill allowing a portion of state public funds to be invested in Bitcoin and other crypto assets. Meanwhile, Arizona has passed a regulatory bill authorizing the creation of a Digital Asset Strategic Reserve Fund to manage these investments with seized assets. Governor Katie Hobbs has already signed this legislation, making Arizona another national pioneer in integrating cryptocurrencies into public finance.

Oregon is also advancing a legal framework that recognizes Bitcoin as a strategic asset, creating a domino effect on the institutional acceptance of cryptocurrencies. 

In short, all these initiatives aim for an innovative and secure public administration in which Bitcoin is a key and fundamental asset. 

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State adoption of the market-leading cryptocurrency not only aims to protect public funds against inflation and diversify reserves, but also seeks to attract capital and tech startups, positioning these states as hubs for financial innovation. These moves align with international trends, where several countries are incorporating Bitcoin into their official reserves, reducing regulatory risks and encouraging institutional investment.

Bitcoin investment strategies in the face of a new rally

With Bitcoin surpassing $100.000, it's worth remembering that investors have several strategies to take advantage of this moment. The most traditional is the HODLing, which involves holding Bitcoin long-term to benefit from its scarcity and potential as a store of value against inflation. Companies like Strategy, Metaplanet, and Tesla, and funds like BlackRock, exemplify this vision by steadily accumulating the asset.

Another popular strategy is the Dollar Cost Averaging (DCA), which involves buying fixed amounts of Bitcoin regularly, mitigating volatility and avoiding trying to predict the best buying time. For those seeking short-term gains, the signals, based on technical and fundamental analysis, also allows you to take advantage of cryptocurrency price fluctuations. 

On the other hand, the market also offers financial products such as ETFs, derivatives and futures that allow portfolios to be diversified and adapted to the investor's profile. All of these strategies position those who integrate technical and fundamental analysis and prudent risk management to capitalize on this historic rally.

With a value above $100, the confidence of institutional and retail investors is growing, and Bitcoin is further cementing itself as a key asset for protecting against inflation and as a driver of innovation in the global financial system.  

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Investing in cryptoassets is not fully regulated, may not be suitable for retail investors due to high volatility and there is a risk of losing all invested amounts.