Bitcoin breaks $104K, hits new 2025 high on hopes of U.S.-China trade realignment

Bitcoin has once again captured the spotlight as its price surged past $104,000, reaching a new high for 2025. The 2 per cent rally was sparked by recent bold remarks from former President Donald Trump, hinting at a 'total reset' in U.S.-China trade relations. This development has sent fresh waves through the cryptocurrency market, raising questions about the implications for Africa's digital assets and investor sentiment. In a recent interview with CNBC Africa's Tabitha Muthoni, Monalisa Agbata, Co-Founder and CEO of One Dev, provided insights into the impact of Bitcoin surpassing the $100k mark in response to geopolitical rhetoric rather than fundamental factors. Agbata expressed optimism about the market's future, highlighting the potential positive outlook and increased investment in Bitcoin as stability in trade relations is achieved. When discussing the new global order and the decoupling from traditional fiat currencies, Agbata emphasized Bitcoin's role in stabilizing the market amidst geopolitical uncertainties. She noted that Bitcoin would continue to play an active role and attract more institutional investment as macroeconomic and fundamental aspects align positively. Despite the potential decoupling, Agbata underscored that Bitcoin's value is significantly influenced by political dynamics driven by the population. Regarding Africa's digital assets, Agbata acknowledged the progress made by countries like Kenya and Nigeria in positioning themselves favorably in the cryptocurrency space through positive regulatory frameworks. She highlighted the potential for Africa to benefit from global trends and improved government openness, leading to more opportunities and ease of doing business for crypto companies operating in the region. Agbata mentioned the Nigerian government's shift towards clearer regulations, which is expected to enhance trust and facilitate the entry of crypto brands into African markets. She also emphasized the need for more specific details on how companies can engage effectively with the African market, similar to recent developments in the U.S. that have opened up opportunities for various firms. In response to the question about whether Bitcoin is evolving into a macroeconomic hedge or if its recent price surge is merely a result of political noise, Agbata described the current rally as a political bubble that could pave the way for fundamental growth once trade deals are confirmed. She suggested that stability in the market could follow the resolution of trade uncertainties. Overall, the increasing value of Bitcoin and the evolving global trade dynamics have stirred both excitement and caution among investors and industry players. As Africa positions itself to capitalize on the growing digital assets market, regulatory clarity, government support, and alignment with global trends will be key factors shaping the continent's crypto ecosystem. With Bitcoin's price momentum and the changing geopolitical landscape, the future of digital assets in Africa holds promise for sustained growth and innovation, provided that regulatory environments continue to evolve in a favorable direction.