Bitcoin News Today: Bitcoin Gains 3.1% to $118,000 as Trump's EU Trade Deal Eases Tariff Fears

Bitcoin surged back to $118,000 in early July 2025 following U.S. President Donald Trump’s announcement of a landmark trade agreement with the European Union, marking a significant rebound for the cryptocurrency sector. The deal, touted as “the biggest deal ever made” by Trump, alleviated investor fears of escalating tariffs and trade barriers, which had previously dampened market sentiment. The price recovery came after a turbulent week where Bitcoin fell to a two-week low of $114,500 amid heavy institutional selling, including Galaxy Digital’s offloading of 80,000 BTC valued at over $9 billion [1]. By mid-July, Bitcoin’s market capitalization had climbed to $2.35 trillion, with its dominance over altcoins stabilizing at 59.2% [2].

The rally was fueled by renewed institutional demand and inflows into crypto ETFs, as the trade deal reduced macroeconomic uncertainty. Analysts noted that the resolution of the U.S.-EU dispute created a more favorable environment for cryptocurrencies [3]. The broader market also benefited, with Ethereum nearing $4,000 and altcoins like BNB, SOL, and CRO hitting multi-month highs. The total crypto market cap grew by $30 billion, reaching $3.97 trillion by mid-July [2].

Bitcoin’s resurgence, however, faces challenges. Technical analysis highlights resistance at $120,000, a level it has struggled to breach in previous attempts. After hitting a record high on July 14, the cryptocurrency consolidated between $117,000 and $120,000 before experiencing a sharp correction. The recent recovery reflects confidence in regulatory clarity and macroeconomic stability but leaves the path to $120,000 uncertain [1].

The trade agreement’s impact extended beyond Bitcoin. Altcoins such as Ethereum, Ripple (XRP), and Solana (SOL) saw modest gains, while niche tokens like Hedera (HBAR) and Cronos (CRO) surged by over 10% and 6%, respectively. This broad-based rally underscored the market’s sensitivity to global trade dynamics and regulatory developments. “The EU-U.S. agreement has removed a major overhang, but sustained momentum will depend on further policy clarity and macroeconomic data,” an analyst observed [3].

Bitcoin’s performance also drew renewed interest from institutional and retail investors. ETF inflows accelerated as the trade dispute’s resolution reduced geopolitical risks, prompting major players to reassess their Bitcoin exposure. After weeks of selling, some large holders entered the market, contributing to Bitcoin’s stabilization and a $4,000 price rebound within a week [2].

The U.S.-EU trade deal’s immediate effect on Bitcoin highlighted the cryptocurrency’s growing integration into traditional financial markets. While Trump’s administration emphasized deregulation and trade normalization, long-term gains will depend on sustained policy clarity and macroeconomic factors such as interest rates and inflation. For now, the market’s reaction underscores Bitcoin’s role as a barometer for global trade and regulatory developments [1].

Source:

[1] [Bitcoin Back at $118K After Trump’s EU Trade Deal] (https://news.bitcoin.com/bitcoin-back-at-118k-after-trumps-eu-trade-deal/)

[2] [CRO Explodes to 6-Month High, BTC Price Reclaims $118K] (https://cryptonews.net/news/analytics/31326313/)

[3] [Trump’s EU Trade Deal Sparks Crypto Surge: BTC Nears $120K, BNB Breaks ATH] (https://cryptopotato.com/trumps-eu-trade-deal-sparks-crypto-surge-btc-nears-120k-bnb-breaks-ath/?amp)