Bitcoin News Today: Bitcoin surges 1.1% to $119.5k as U.S.-EU trade deal and Fed report drive optimism

Bitcoin surged to $119,552.60 as of 02:18 ET (06:18 GMT) on July 1, 2025, marking a 1.1% gain amid optimism surrounding the U.S.-EU trade framework agreement and anticipation of a U.S. Federal Reserve crypto policy report due July 30 [1]. The price action followed a pullback from two-week lows over the weekend, reflecting renewed risk appetite as investors shifted capital toward high-growth assets. The deal, which reduces U.S. tariffs on EU imports to 15% from a threatened 30% and secures $750 billion in EU energy purchases, eased political and trade uncertainties, prompting a rotation into equities and cryptocurrencies [1]. However, Bitcoin remained range-bound as market participants awaited clarity on the Fed’s rate policy and the July 30 report, which is expected to outline plans for a strategic bitcoin reserve and regulatory frameworks for stablecoins [1].

The Federal Reserve’s two-day meeting, concluding Wednesday, is anticipated to maintain the benchmark rate within the 4.25%-4.50% range. Traders will scrutinize Fed officials’ comments for hints about potential rate cuts later in the year, a scenario that could further bolster Bitcoin by diminishing returns on low-yield safe assets [1]. Analysts noted that a dovish tone from the Fed might strengthen the case for Bitcoin as a hedge against low-interest environments, though the current rally remains tethered to macroeconomic risks and policy guidance [1]. The U.S. crypto policy report, meanwhile, is seen as a critical catalyst for institutional confidence, with clearer regulatory guidelines potentially normalizing crypto investments in traditionally cautious sectors [1].

Altcoins outperformed Bitcoin, with Ether rising over 4% to $3,924.15, a seven-week high, while XRP, Solana, and Cardano climbed between 2.2% and 3.5% [1]. Meme tokens like Dogecoin and $TRUMP also gained traction, climbing 4% and 2.2%, respectively. The broader rally underscores growing appetite for speculative assets amid trade optimism, though volatility persists as markets balance short-term gains against upcoming policy developments [1]. On-chain data indicated increased activity in large wallets and reduced short-term selling, suggesting traders are positioning for a potential breakout above $120,000 [1].

Despite the bullish momentum, analysts emphasized that Bitcoin’s trajectory remains contingent on external factors. The Fed’s decision and the crypto report are expected to shape near-term sentiment, with divergent outcomes creating potential for either consolidation or a more aggressive rally [1]. Regulatory divergences in jurisdictions such as China and the EU remain a risk, but for now, the focus remains squarely on U.S. policy developments [1]. The market’s cautious stance ahead of these catalysts highlights the delicate balance between trade-driven optimism and macroeconomic headwinds.

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[1] [Bitcoin price today: rises to $119.5k amid trade cheer; Fed, crypto report eyed] [https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-rises-to-1195k-amid-trade-cheer-fed-crypto-report-eyed-4154344]