Bitcoin Tops $100K as Markets Rally on Trade Progress

Bitcoin surged past the $100,000 threshold Thursday for the first time since February, while U.S. stock indexes climbed on news of a freshly announced trade deal with the United Kingdom. The cryptocurrency’s 7% daily gain coincided with broader market optimism that sent the Nasdaq Composite up 1.07% and smaller companies leading the charge with the Russell 2000 advancing 1.9%.

These gains reflect growing investor confidence that trade tensions may be easing, creating potential opportunities across multiple sectors as market sentiment improves.

Cryptocurrency Milestone Amid Digital Asset Renaissance

Bitcoin reached approximately $103,000 in Thursday trading, marking a 48% increase since the November presidential election and nearly 35% growth in the past month alone. According to CNBC, this milestone comes despite challenges for cryptocurrency exchange Coinbase, which reported first-quarter revenue that failed to meet analyst expectations.

Coinbase shares fell nearly 3% in extended trading after the company disclosed a 17% drop in consumer trading volume from the fourth quarter. However, the exchange’s stock has still gained 36% over the past month despite being down 41% from its December high.

The resurgence in cryptocurrency prices has prompted some analysts to revise their projections upward. A Standard Chartered analyst even issued a “tongue-in-cheek apology” suggesting that his previous price target of $120,000 for bitcoin “may be too low,” underscoring the dramatic shift in market sentiment.

Small Caps and Industrials Lead Broader Rally

The Russell 2000 small-cap index emerged as Thursday’s strongest performer, climbing 1.9% and continuing its recent recovery. Despite still trading 18% below its 52-week high, the index has surged 15% in just the past month, indicating renewed investor confidence in smaller American companies typically more sensitive to domestic economic conditions.

Industrial stocks have shown particular strength, with the sector gaining 2.8% over the past week according to CNBC’s market analysis. Major airlines stood out as significant gainers, with Delta Air Lines up 17% and United Airlines climbing nearly 15% during the same period.

The industrial sector’s performance is especially notable as it remains just 5.3% below its 52-week high, with only utilities and financials positioned closer to their respective peaks among the eleven major market sectors.

Real Estate Investments Show Surprising Strength

Residential real estate investment trusts (REITs) have posted impressive gains over the past month, potentially reflecting changing housing market dynamics. American Homes 4 Rent has climbed approximately 17% in the past month, while Essex Property has gained 10.6% during the same period.

Other residential REITs showing strength include UDR (up 10% in a month), AvalonBay (up 9.2%), and Mid-America and Realty Income (both up more than 7%). The sector’s performance comes as CNBC reports that renters are staying in rental properties for longer periods, potentially benefiting companies with large residential portfolios.

This trend could signal a significant shift in housing patterns that may have long-term implications for both the real estate market and related investment vehicles as affordability challenges persist in many regions.

Key Investment Figures and Events to Watch

Market participants are focusing on several key developments that could influence trading in Friday’s session and beyond. Prominent investor Cathie Wood of Ark Invest will appear on CNBC’s “Squawk Box” Friday morning, potentially providing insight into her recent decision to resume purchasing Nvidia shares after previously reducing the position.

Wood’s Ark Innovation ETF (ARKK) has gained ground recently but remains 25% below its February high. The fund’s largest holdings include Tesla (up nearly 30% in a month but down 41.7% from December highs), Coinbase, Roblox (up 37% in a month), and Palantir (up 54% in a month).

The cryptocurrency markets will continue drawing attention following bitcoin’s milestone, while traders await China’s April trade data on Friday for insights into how Trump’s tariff policies are affecting global commerce.