tl;dr
Bitcoin rose to $109,600 as President Trump delayed a proposed 50% tariff on EU goods, easing trade tensions. The EU requested more time to finalize a trade agreement after talks with Trump. U.S. equity futures also rose on optimism. Bitcoin is increasingly seen as a non-sovereign asset and inflatio...
Bitcoin rebounded to $109,600 following President Trump's decision to delay a proposed 50% tariff on European Union (EU) goods, easing trade tensions and boosting market optimism. The EU requested more time to finalize a trade agreement after talks with Trump, leading to rising U.S. equity futures and a positive market response.
Bitcoin’s rise aligns with its increasing perception as a non-sovereign asset and hedge against inflation, with multiple market analysts forecasting price targets around $120,000. The EU had paused retaliatory tariffs on $23 billion of U.S. imports and is consulting on further measures concerning $95 billion worth of goods.
Crypto markets remained broadly stable, with Ethereum near $2,550 and modest gains for Solana and Avalanche. Traders are carefully balancing geopolitical risks, institutional inflows, and upcoming U.S. inflation data, particularly the core PCE inflation report expected later in the week.
President Trump had initially proposed tariffs starting at 20% and later threatened to raise them to 50% by June 1 if no trade progress was made. The revised July 9 deadline eased immediate trade-related volatility but kept markets in cautious anticipation. S&P 500, Dow, and Nasdaq futures all showed gains, reflecting optimism around eased transatlantic trade pressures.
Experts like Ryan McMillin of Merkle Tree Capital highlight Bitcoin’s recent trading pattern mirroring gold, driven by surging global M2 money supply and inflation concerns. Other analysts, including Pav Hundal of Swyftx, note significant options activity with notable volumes betting on Bitcoin reaching $120,000 by the end of June.
While the digital asset rally lost some momentum in April amid tariff uncertainty, analysts affirm the current uptrend feels structurally sound. This bullish sentiment is supported by a more accommodating U.S. regulatory environment and persistent institutional demand through ETFs and direct spot allocations, according to Singapore-based QCP Capital.
Overall, the interplay between evolving trade policy and macroeconomic factors continues to exert influence on cryptocurrencies and equities alike, with investors maintaining cautious optimism about future developments and market direction.