Market Euphoria After the US–UK Trade Framework Deal: Bitcoin Breaks $100,000, Equities Follow
The announcement of a framework trade deal between the US and the UK has sent shockwaves across global markets. The price of bitcoin surged past the $100,000 mark for the first time since February, highlighting investors’ renewed appetite for riskier assets. Among stock indices, Nasdaq Composite gained 1.1% and the S&P 500 rose 0.6%, followed by a strong performance on the Prague Stock Exchange, where the PX index closed at a historic high of 2145.99 points (+2.01%). Bank stocks led the rally in Prague, with Erste Group up by 3.5% and Komerční banka climbing 2.8%. Overall, investors celebrated the easing of global trade tensions.
Cryptocurrencies reacted even more explosively to the optimism. In addition to bitcoin, other digital assets posted significant gains – Dogecoin jumped 12.6% and Litecoin added 8.4%. A massive amount of capital flowed into crypto ETFs, with net inflows into bitcoin ETFs totaling $321.4 million on Tuesday, May 9. This surge in interest pushed the Crypto Fear & Greed Index into the “greed” zone (around 70), signaling a sharp shift from the cautious mood in April.
While the recent Ethereum rally wasn’t the centerpiece of bitcoin-related coverage, seasoned market watchers noted Ether briefly broke through the $2200–2350 resistance band, marking a 20% jump in 24 hours – the strongest 1-day performance in four years. This enthusiastic reaction across the crypto market reinforces analysts’ view that any sign of de-escalation in trade conflicts or tariff rollbacks – like the US–UK deal – is seen as fuel for digital assets.
Global equity markets embraced the news as a strong signal of deepening economic cooperation. In the US, the Dow Jones rose by roughly 0.5% and the Nasdaq advanced by 1.1%, although it’s worth noting that markets are responding to expectations of smoother trade relations, not a full resolution. In Europe and the Czech Republic, the overall sentiment mirrored this optimism: in addition to Prague’s record high, major indices in Germany and France also saw gains. A $10 billion aircraft order by a UK airline, placed with Boeing, lifted industrial and aerospace stocks.
That said, it’s important not to get carried away. As several news outlets pointed out, the current deal is more of a framework than a full liberalization agreement. The baseline 10% tariff on UK exports, introduced by Trump, remains in place – only specific duties on steel, aluminum, and select automotive goods are being lifted. Outlets such as The New York Times emphasized that the agreement is still a work in progress requiring further negotiations.
On top of that, a number of other macroeconomic factors influenced the sentiment – for example, while the Fed left interest rates unchanged, which helped stabilize risk appetite, concerns about inflation and future US trade policy remain unresolved.
Summary:
The announcement of the trade deal between the US and UK delivered a strong bullish impulse across global markets. Cryptocurrencies – especially bitcoin – soared to new levels, equity indices rallied (including the all-time high for the Czech PX index), and even commodities like oil benefitted from the revived optimism around global demand.
However, investors remain cautious, recognizing that the 10% baseline tariff is still active and further talks with China are on the horizon. Economists warn that while short-term euphoria supports the rally, the long-term trajectory will depend on the outcomes of ongoing trade talks and the broader macroeconomic environment.