• Ether (ETH) jumps 14% to $2,050.66, hitting its highest level since late March.
  • Bitcoin nears $100,000 amid broader crypto market optimism tied to the US-UK trade agreement.
  • Short liquidations spike as bullish sentiment drives $83.6 million in forced position closures.

Crypto Markets Rally on Trade Deal Optimism

Ether surged alongside Bitcoin and other major cryptocurrencies following the announcement of a "full and comprehensive" trade deal between the US and UK. The agreement, unveiled by President Donald Trump, marks a significant step in post-Brexit economic relations and has injected fresh optimism into risk assets.

Traders rushed to cover short positions as prices climbed, with $83.6 million in liquidations occurring during the rally. Open interest in crypto derivatives markets jumped 26%, signaling strong conviction behind the move. "This is classic 'buy the rumor' behavior," said one London-based trader who asked not to be named. "The market's reacting to the potential economic upside before we even see the deal's details."

Trade Winds Lift All Boats

The US-UK agreement comes after years of Brexit-related uncertainty and recent tariff escalations. Early reports suggest reduced tariffs and closer economic integration between the two nations - developments that traditionally benefit growth-sensitive assets like cryptocurrencies.

Crypto's rally pushed total market capitalization to $3.2 trillion, with XRP and other altcoins joining Bitcoin and Ether in the green. The move echoes past crypto surges tied to macroeconomic events, though some analysts caution the gains could prove fleeting if the trade deal's implementation disappoints.

Market makers reported unusually heavy institutional flows into crypto derivatives during the rally. "We're seeing real money positioning for sustained upside," noted a prime brokerage executive, citing increased activity from hedge funds and family offices.

Correction: An earlier version misstated the percentage increase in the U.S. goods trade surplus. The correct figure is 17.4%.