Crypto breaks $100K—but is it sustainable?
Crypto markets surged this week, with Bitcoin reclaiming the $100,000 mark for the first time since February. The euphoria was immediate. Major tokens rose in unison after the announcement of a U.S.-U.K. trade deal.
Optimists claim that Bitcoin is poised for another bull run. But the question remains—is the crypto rally here to stay, or is this just another short-term reaction?
Trade deal optimism boosts crypto sentiment
President Trump’s newly announced trade agreement with the United Kingdom was seen as a positive geopolitical signal. However, the fine print suggests it’s more symbolic than structural.
The UK represents a small fraction of U.S. trade. And the U.S. already runs a trade surplus with Britain, making this deal less impactful than one with a key deficit partner like China.
This casts doubt on whether current crypto gains can be sustained through trade optimism alone.
Fed warnings shadow the crypto rally
Federal Reserve Chair Jerome Powell added to the uncertainty just 48 hours after the trade news. He warned that rising tariffs could slow economic growth and push prices higher.
While the economic impact of tariffs hasn’t hit yet, Powell’s caution underscores risks to global markets. If more trade deals aren’t signed in the next 60 days, the crypto rally could fade fast.
These macroeconomic signals raise questions about the durability of investor enthusiasm.
Institutional adoption supports crypto growth
One of the strongest pillars for a sustainable crypto bull market is institutional adoption. Inflows into spot Bitcoin ETFs recently turned positive after a lull caused by tariff uncertainty.
Interestingly, more funds are now flowing into Bitcoin ETFs than gold ETFs. This shift suggests growing confidence in crypto as a long-term store of value.
Corporations are also buying in. MicroStrategy recently expanded its Bitcoin holdings again, with smaller firms mimicking its strategy to add crypto to their balance sheets.
Understanding the crypto cycle
Historically, crypto—and especially Bitcoin—follows a four-year cycle tied to halving events. The last halving occurred in April 2024, over 12 months ago.
Based on past data, this signals that we may be in the final leg of the current bull cycle. If the pattern holds, Bitcoin may experience a blowoff top by November—followed by a steep correction.
Investors chasing short-term gains could get caught in the volatility typical of late-stage crypto bull runs.
Crypto is a long-term commitment
If you’re entering crypto for quick profits, you might be approaching it the wrong way. The market is known for its volatility and boom-bust nature.
Veteran investors understand that crypto cycles include painful corrections. Staying the course during downturns is the only proven way to benefit from long-term growth.
History shows that those who treat crypto as a long-term asset outperform short-term speculators.