Bitcoin News Today: Bitcoin Surges 12% and Ethereum Rises 3% on Landmark U.S.-EU Trade Deal

Bitcoin and Ethereum experienced a significant surge in late July 2025 following the announcement of a landmark U.S.-EU trade agreement, which alleviated global trade tensions and boosted risk-on sentiment across financial markets. The deal, finalized on July 27, included reduced tariffs on key goods and a $750 billion energy purchase from the U.S., marking a major de-escalation in transatlantic trade disputes. This development coincided with Bitcoin reaching an all-time high of $120,000 and Ethereum climbing to $3,867.76, driven by renewed optimism about macroeconomic stability and regulatory clarity [1]. The agreement, negotiated by Donald Trump on July 1, aimed to unlock the EU’s $20 trillion market by aligning standards with U.S. auto and industrial norms, as highlighted by Secretary of Commerce Howard Lutnick in public statements.

The surge in crypto assets was fueled by increased institutional adoption and substantial investment inflows. Ethereum ETF inflows exceeded $2.2 billion, reflecting heightened interest from institutional investors [1]. The broader crypto market capitalization swelled by $78 billion, with Bitcoin maintaining its elevated price above $119,000 during the latest trading week. Regulatory clarity also played a role, as the recently passed GENIUS Act provided a framework to streamline cryptocurrency regulations, bolstering investor confidence [4]. Analysts attributed the rally to the trade deal’s potential to reduce uncertainty, which typically dampens demand for volatile assets like cryptocurrencies [3].

The U.S.-EU agreement followed earlier reports of a 90-day trade truce between the U.S. and China, further reinforcing market confidence [2]. This convergence of trade news reduced fears of a global tariff war, which had previously pressured risk assets. Bitcoin’s 12% surge in a single week highlighted its sensitivity to macroeconomic tailwinds, with traders noting that the trade deal’s liquidity effects—such as increased global M2 money supply growth—could support continued upward momentum [3]. Ethereum’s 3% gain underscored broader optimism about corporate spending and regulatory developments, including the proposed U.S. "GENIUS Act" [4].

Despite the positive reaction, analysts identified potential headwinds. The U.S. Federal Reserve’s upcoming interest rate decision and inflation data releases remained critical focal points, as policymakers balanced economic growth with inflation control. The stablecoin liquidity ratio (SSR) indicated a tightening in available capital for Bitcoin purchases, raising questions about the sustainability of the rally [5]. Crypto Tony, a prominent trader, emphasized that Bitcoin needed to hold above $117,000 to maintain its bullish trajectory, cautioning against pullbacks below key support levels [6].

The trade agreement’s impact extended beyond crypto markets. European equities surged, with S&P 500 futures hitting an historic high of 6,400 as investors anticipated reduced trade barriers and increased cross-border investment [7]. The deal’s emphasis on energy and defense-related purchases also signaled a shift in global trade dynamics, potentially benefiting industries tied to U.S. and EU supply chains. However, analysts cautioned that the agreement’s long-term success would depend on its implementation and the resolution of broader geopolitical tensions, such as U.S.-China relations [8].

In the short term, the crypto market’s reaction to the U.S.-EU deal highlighted its growing integration with traditional financial systems. The trade deal’s immediate liquidity effects, combined with regulatory clarity and macroeconomic stability, created a favorable environment for risk assets. Yet, the market remained cautious ahead of the Federal Reserve’s rate decision, with minimal probability of a July rate cut but heightened speculation about September easing [9]. As Bitcoin approached its historical July performance average, traders debated whether the current rally could outperform past trends, particularly given the sector’s reliance on stablecoin liquidity [10].

The convergence of trade diplomacy, regulatory developments, and macroeconomic indicators underscored the evolving interplay between geopolitical events and crypto markets. While the U.S.-EU deal offered a temporary reprieve from trade uncertainties, sustained momentum for Bitcoin and Ethereum would depend on broader economic resilience and the resolution of ongoing regulatory and liquidity challenges.

Source:

[1] [title1] [https://www.financemagnates.com/trending/why-is-crypto-going-up-today-bitcoin-hits-120k-ethereum-price-at-2025-high-dogecoin-and-xrp-follow/]

[2] [title2] [https://coingape.com/us-and-eu-reach-tariff-deal-crypto-market-reacts/]

[3] [title3] [https://www.ainvest.com/news/bitcoin-news-today-eu-1-35-trillion-trade-deal-drives-12-bitcoin-surge-market-uncertainties-ease-2507/]

[4] [title4] [https://coincentral.com/why-is-crypto-up-today-lets-dive-in/]

[5] [title5] [https://cointelegraph.com/news/biggest-trade-deal-ever-5-things-bitcoin-this-week]

[6] [title6] [https://cointelegraph.com/news/biggest-trade-deal-ever-5-things-bitcoin-this-week]

[7] [title7] [https://www.investing.com/news/stock-market-news/european-stocks-surge-on-useu-trade-agreement-heineken-reports-4154401]

[8] [title8] [https://cointelegraph.com/news/biggest-trade-deal-ever-5-things-bitcoin-this-week]

[9] [title9] [https://cointelegraph.com/news/biggest-trade-deal-ever-5-things-bitcoin-this-week]

[10] [title10] [https://cointelegraph.com/news/biggest-trade-deal-ever-5-things-bitcoin-this-week]