Bitcoin breaks through $100,000, hitting a three-month high: Trump trade agreement and reform of the wealth tax fuel market excitement
On May 8, 2025, the price of Bitcoin surpassed $100,000, reaching a new high since February and boosting the cryptocurrency market. This surge is related to President Trump announcing a trade agreement with the UK, which covers multiple goods. Trump urged investors to buy stocks and proposed increasing taxes on the wealthy to support tax cuts for the middle class. The market responded enthusiastically, with U.S. stocks and risk assets rising in tandem, showing the policy's impact on investor sentiment.
Key Updates
05/09 03:09
Bitcoin breaks through $100,000, hitting a three-month high: Trump trade agreement and reform of the wealth tax fuel market excitement
On May 8, 2025, the price of Bitcoin surpassed $100,000, reaching a new high since February and boosting the cryptocurrency market. This surge is related to President Trump announcing a trade agreement with the UK, which covers multiple goods. Trump urged investors to buy stocks and proposed increasing taxes on the wealthy to support tax cuts for the middle class. The market responded enthusiastically, with U.S. stocks and risk assets rising in tandem, showing the policy's impact on investor sentiment.
Bitcoin Breaks Through $100,000, Leading Crypto Market Rebound
According to data from Coin Metrics and CoinMarketCap, Bitcoin briefly rose to $100,801 on May 8, with an intraday increase of over 4%, marking the first time it has surpassed the $100,000 mark since February 2025. As of 8:29 AM Taipei time on May 9, Bitcoin was quoted at $102,829.16, surging 5.88% in 24 hours.
Antoni Trenchev, co-founder of the Nexo cryptocurrency exchange, noted that this Bitcoin rebound not only reflects a return of market risk appetite but also reaffirms its asset resilience in uncertain environments. He stated, "Bitcoin's return to $100,000 further solidifies its status as a hedge and store of value."
In addition to Bitcoin, other major cryptocurrencies also experienced a recovery rally. Ethereum rose 12%, Solana tokens increased by 9%, and Dogecoin was up 11%. According to Coinglass data, the total liquidation amount in the crypto market over the past 24 hours reached $298 million, indicating a massive short squeeze.
US-UK Trade Agreement Announced, Trump Says "Nation Will Soar Like a Rocket"
The simultaneous rise of Bitcoin and US stocks is closely related to the major trade policy announced by the Trump administration. On May 8, Trump announced in the Oval Office that the US and the UK had reached a comprehensive trade agreement. The agreement covers US exports such as beef, ethanol, chemical products, and machinery, and allows US goods to quickly clear customs into the UK market. The UK, in turn, received a reduction in car tariffs from 27.5% to 10% and can export 100,000 cars annually to the US at a 10% tariff rate.
Trump stated, "This is just the beginning. We will finalize more agreements in the coming weeks. You better buy stocks now; this country will soar like a rocket."
US Commerce Secretary Lutenik added that dozens of trade agreements are expected to be finalized within the next month and emphasized that all countries will face a 10% base tariff, with potentially higher rates for countries with a US trade deficit.
Tax on High-Income Earners Adjustment Plan Emerges to Support Middle-Class Tax Cuts and Trade Policy
While promoting trade policy, Trump also proposed tax adjustments to support his economic plan. According to Bloomberg and Fox News reports, Trump is pushing for a tax increase on high-income earners, planning to raise the individual tax rate for those earning over $2.5 million annually from 37% to 39.6%. Additionally, he aims to eliminate capital gains tax preferences for venture capital and private equity fund managers.
Trump's move is intended to provide financial support for middle-class tax cuts and trade policy. US Treasury Secretary Besent expressed support for this tax reform direction, stating, "We are committed to rebalancing the international economic system to better align with US interests."
Although this move has sparked divisions within the Republican Party, with some mainstream conservatives opposing any form of tax increase, the Trump camp believes that adjusting the tax on high-income earners can create fiscal space to further promote policies beneficial to the middle and working classes.
Signs of Easing US-China Trade Relations, Tariff Adjustments in Focus
Following the agreement with the UK, the Trump administration also signaled a potential easing of trade relations with China. Trump stated at a press conference that the current 145% tariff on Chinese imports "will only go down," and hinted that if negotiations go well, the rate could drop to 50% to 54%.
According to reports from the New York Post and China Times, senior US and Chinese officials will begin trade negotiations in Switzerland, and the Trump administration is considering lowering tariffs during the negotiations to create a positive atmosphere. US Treasury Secretary Besent also noted that the current triple-digit tariff rate is "unsustainable" and looks forward to "fruitful negotiations."
The market reacted positively, with retailers beginning to adjust pricing strategies based on different tariff scenarios, and some choosing to delay shipments, awaiting clearer policies.
Market Reaction: US Stocks and Risk Assets Rise Together
Encouraged by favorable policies, major US stock indices rose simultaneously. The Dow Jones Industrial Average increased by 254.48 points, closing at 41,368.45 points; the S&P 500 Index rose by 32.66 points, closing at 5,663.94 points; and the Nasdaq Index climbed 98 points, closing at 17,928.14 points.
Trump emphasized at the press conference, "Our trade agreements and tax reform bill will propel the US economy into a new era of prosperity." He repeatedly urged investors that "now is the best time to buy stocks," and stated, "These will be unprecedented numbers."
