Bitcoin rallies to $120K as US-EU near a 15% tariff deal, easing trade tensions and boosting crypto market optimism.
Bitcoin has experienced the most significant increase in value as reports of a potential US-EU trade agreement emerge before Donald Trump’s August 1 deadline. The rest of the market is making a valiant effort to mirror the most prominent cryptocurrency, while the BTC price is marching toward $118,500.
The price of bitcoin has increased following a challenging trading day
Bitcoin is exhibiting the initial indications of a rally, as evidenced by the impressive hourly gains, as indicated by CoinMarketCap data. At the time of publication, the largest cryptocurrency is on the brink of the $118,500 threshold amid a brief surge propelled by fresh macroeconomic sentiment.
The market capitalization increased to $2.3 trillion, and daily trading volumes totaled $64.45 billion, contributing to the rapid rally. The price of Bitcoin (BTC) increased by a modest 1% on the seven-day chart; however, it has increased by nearly 20% over a month.
Bitcoin and the rest of the crypto market experienced a decline in the early hours of the day due to Donald Trump’s vows to impose escalating tariffs on various countries. The global cryptocurrency market capitalization experienced a nearly $40 billion decline, as the leading cryptocurrencies experienced a decline.
Presently, cryptocurrency prices are endeavoring to capitalize on Bitcoin’s upward trajectory to mitigate losses that occurred earlier in the day. Bitcoin maintains a 60.1% market share, while Ethereum’s is 11.2%.
The US-EU trade agreement has generated optimism regarding the value of cryptocurrencies
According to a Financial Times report, the EU and the United States are on the brink of a trade agreement imposing 15% tariffs on all European tariffs. Since April, EU exporters have been subject to heightened tariffs on specific products shipped to the United States. However, if the agreement is not finalized, the bloc may be required to pay duties as high as 30%.
Trump implemented a 30% tariff on the European Union beginning on August 1 to close trade disparities. This announcement was made in mid-July. At that time, EU President von der Leyen observed that the economic alliance would initiate negotiations with the United States to establish a compromise.
Nevertheless, the report indicates that the European Union is preparing a set of retaliatory tariffs if the parties cannot reach an agreement by August 1. Concurrently, the United States and Japan have concluded a trade agreement, which has fueled anticipation for a comparable agreement with the European Union. In the past, the price of Bitcoin and other cryptocurrencies plummeted due to Trump’s rejection of tariff deadline extensions.
