Bitcoin News Today: Bitcoin Surges to $119,000 as U.S.-EU Trade Pact Cuts Tariffs to 15%

Bitcoin surged to nearly $120,000 following the U.S. and European Union’s announcement of a trade agreement on July 25, 2025, with the cryptocurrency market reacting positively to reduced trade uncertainty and strategic tariff adjustments. The deal, finalized after negotiations led by President Donald Trump and European Commission President Ursula von der Leyen, established a unified 15% tariff on most EU exports to the U.S., including automobiles, while exempting strategic products like aircraft components and minerals from tariffs. This marked a shift from Trump’s earlier threats of 30% tariffs on EU goods and aimed to stabilize transatlantic trade relations [7].

The agreement included significant financial commitments: the EU pledged $600 billion in investments in U.S. energy and infrastructure, while the U.S. agreed to purchase $750 billion in European energy and military equipment. These provisions, alongside reduced trade barriers, alleviated fears of protectionist escalation and boosted global market confidence. Equity indices and the euro rose in response, reflecting renewed optimism in economic stability [5].

The cryptocurrency market mirrored this optimism. Bitcoin climbed above $119,000, with a notable $9 billion institutional transaction signaling strong confidence. BNB, the second-largest cryptocurrency by market capitalization, also hit an all-time high, driven by broader risk-on sentiment [2]. Analysts attributed the rally to the agreement’s role in eliminating “crippling uncertainty” for global markets. Thomas Lee, Head of Research at Fundstrat Global Advisors, highlighted that the deal removed a negative “tail risk” event, which historically benefits equities [5].

The U.S.-EU pact aligns with Trump’s broader trade strategy, which has seen standardized tariff rates of 15% or higher in agreements with Vietnam, the Philippines, and Indonesia. Von der Leyen emphasized the deal’s “predictability” as a critical factor for businesses navigating post-pandemic supply chain challenges. While some European officials expressed concerns over the 15% rate being lower than initial hopes for free trade or a 10% rate, the agreement was widely viewed as a stabilizing force for global markets [7].

Historical precedents, such as the 2025 U.S.-Japan trade pact, demonstrate Bitcoin’s sensitivity to trade stability. Analysts suggest that reduced macroeconomic threats, such as those addressed in the U.S.-EU agreement, historically correlate with market rallies. The $9 billion Bitcoin transaction underscores the growing role of digital assets in large-scale capital reallocation, particularly during periods of geopolitical and economic stability [1].

The agreement’s long-term impact on the crypto sector could extend beyond immediate price movements. Enhanced economic cooperation between the U.S. and EU may accelerate institutional adoption of digital assets, especially as regulatory frameworks align. The trade deal’s focus on tariff reductions and investment commitments creates a more favorable environment for cross-border transactions, potentially attracting further institutional interest in cryptocurrencies [5].

Sources:

[1] [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-usd11k)

[2] [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/)

[5] [U.S.-EU Trade Pact Cuts Tariffs to 15% on EU Exports Paves Way for $600B Investment and Crypto Rally] (https://www.ainvest.com/news/eu-trade-pact-cuts-tariffs-15-eu-exports-paves-600b-investment-crypto-rally-2507/)

[7] [Trump deal with Europe underlines new standard of (at least) 15% tariffs] (https://finance.yahoo.com/news/trump-deal-with-europe-underlines-new-standard-of-at-least-15-tariffs-191341469.html)