Bitcoin News Today: Bitcoin Soars to $118K on Trump-EU Trade Deal as ETF Inflows and Institutional Demand Drive Rally

Bitcoin’s price climbed to $118,000 in late July 2025 following the announcement of a landmark trade agreement between U.S. President Donald Trump and the European Union, reigniting momentum in the cryptocurrency market after a period of consolidation [1]. The deal, touted by Trump as “the biggest deal ever made,” reduced trade tensions and bolstered investor confidence, with Bitcoin’s value surpassing $119,000 shortly after the agreement’s finalization on July 24. Traders attributed the surge to diminished macroeconomic uncertainty and renewed institutional demand, particularly from hedge funds and corporate buyers [2].

The rally was further supported by record net inflows into spot Bitcoin ETFs during the period, as highlighted by CoinGlass data, which also noted heightened activity on leveraged trading platforms [2]. This speculative positioning reflected growing optimism among traders capitalizing on the deal’s positive sentiment. However, the market experienced a brief correction on July 28, with Bitcoin dropping 2.5% to $118,000 amid reports of institutional selling. Despite the pullback, the cryptocurrency remained within a $116,000–$119,000 range, with $113,000 identified as a critical support level [3]. Analysts emphasized that Bitcoin’s ability to hold these levels indicated increasing acceptance as a macroeconomic hedge, even amid short-term volatility [5].

The trade deal’s impact extended beyond Bitcoin, with altcoins like BNB (BNB) breaking all-time highs and rising over 6% in the week following the agreement. CryptoPotato attributed this cross-chain optimism to reduced regulatory scrutiny in the U.S. and EU, as well as surging corporate buying activity for tokenized assets and DeFi protocols [4]. Market observers noted that the deal’s geopolitical implications—stabilizing trade relations and signaling a potential shift in global regulatory approaches to digital assets—further fueled risk-on sentiment [5].

While the immediate post-deal rally was driven by geopolitical and regulatory tailwinds, analysts cautioned that Bitcoin’s long-term trajectory would depend on macroeconomic fundamentals. Factors such as inflation data, employment figures, and future central bank policy decisions were highlighted as critical determinants of the cryptocurrency’s performance [5]. The absence of immediate central bank interventions, including the Federal Reserve’s next policy meeting, provided a temporary tailwind, but traders were advised to remain cautious about overreliance on political developments for sustained gains.

Sources:

[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] [Asia Morning Briefing: Trump’s EU Tariff Deal Holds Bitcoin Near $119K] https://cryptoadventure.com/asia-morning-briefing-trumps-eu-tariff-deal-holds-bitcoin-near-119k

[3] [Bitcoin News Today: BTC Drops 2.5% to $118K Amid Institutional Selling] https://www.ainvest.com/news/bitcoin-news-today-btc-drops-2-5-118k-institutional-selling-wewake-presale-hits-100k-stage-3-2507/

[4] [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

[5] [Bitcoin News Today: ‘Biggest Trade Deal Ever’ — 5 Things] https://www.binance.com/en/square/post/27556371355474