Bitcoin News Today: U.S.-EU $1.35T Trade Deal Drives 12% Bitcoin Surge, 3% Ethereum Rally

The cryptocurrency market experienced a significant rally in late July 2025 following the United States and European Union’s announcement of a landmark trade agreement, reducing global economic uncertainties and spurring optimism in risk assets. Bitcoin surged to nearly $119,000, while Ethereum climbed over 3%, reflecting renewed investor confidence. The deal, which involves $600 billion in EU investments in the U.S. and $750 billion in U.S. purchases of European resources, was positioned as a critical step toward stabilizing cross-border trade tensions [1].

The price surge followed a coordinated announcement that the U.S. and EU would reduce tariffs on key goods, mitigating fears of prolonged trade disputes. Bitcoin’s price rose sharply, with reports indicating a 12% increase within days, pushing the asset closer to its all-time high. Ethereum mirrored the trend, trading at $3,867.76 as market participants anticipated reduced macroeconomic volatility [2]. Ethereum ETF inflows exceeded $2.2 billion, highlighting growing institutional adoption [1].

Key figures, including U.S. Secretary of Commerce Howard Lutnick, emphasized the agreement’s potential to standardize market norms and bolster U.S.-EU trade relationships. Lutnick stated, “President [Donald] Trump just unlocked one of the biggest economies in the world, emphasizing the EU’s commitment to open its $20 trillion market and standardize to U.S. auto and industrial norms.” The deal’s regulatory implications, coupled with the recent passage of the GENIUS Act, which provides a framework for crypto markets, further bolstered investor confidence [1].

Historical parallels were drawn between this trade agreement and the 2020 U.S.-China Phase One trade deal, which similarly drove crypto market rallies. Both agreements addressed long-standing trade disputes, creating a more predictable economic landscape favored by investors [1]. Thomas Lee, Head of Research at Fundstrat Global Advisors, noted that the U.S.-EU agreement “removes a critical tail risk” for financial markets, underscoring the growing correlation between macroeconomic stability and risk asset performance in volatile environments [1].

While the immediate market reaction was robust, analysts caution that sustained price performance depends on the agreement’s successful implementation. The reduction of trade-related uncertainties may encourage increased allocations to risk assets, particularly as cryptocurrencies increasingly serve as both speculative investments and inflation hedges. However, evolving global economic conditions will remain pivotal in determining long-term outcomes [1].

The U.S.-EU trade deal’s alignment with macroeconomic stability goals has reinforced Bitcoin’s role in diversified portfolios, reflecting broader institutional adoption. As cross-border cooperation continues to shape global markets, the interplay between trade policy and digital assets is expected to remain a focal point for investors and policymakers alike [1].

Source:

[1] [Bitcoin News Today: U.S.-EU $1.35 Trillion Trade Deal Drives 12% Bitcoin Surge](https://www.ainvest.com/news/bitcoin-news-today-eu-1-35-trillion-trade-deal-drives-12-bitcoin-surge-market-uncertainties-ease-2507/)

[2] [Trump's E.U. Tariff Deal Holds Bitcoin Near $119K](https://www.coindesk.com/markets/2025/07/28/asia-morning-briefing-trump-s-eu-tariff-deal-holds-bitcoin-near-usd119k)

[3] [Just In: US And EU Reach Tariff Deal, Crypto Market Reacts](https://coingape.com/us-and-eu-reach-tariff-deal-crypto-market-reacts/)