Bitcoin News Today: Bitcoin surges 3.4% to $118,000 on Trump-EU trade deal optimism

Bitcoin regained $118,000 in early July 2025, fueled by optimism over U.S. President Donald Trump’s trade agreement with the European Union. The deal, hailed as “the biggest deal ever made” by Trump, eased global market tensions and spurred a surge in cryptocurrency prices. Institutional demand and inflows into Bitcoin ETFs amplified the rally, with the market capitalization climbing to $2.35 trillion and Bitcoin’s dominance stabilizing at 59.2% [1]. The recovery followed a volatile week, during which Bitcoin briefly fell to $114,500 after a major sell-off by Galaxy Digital, which liquidated 80,000 BTC for a third party, totaling over $9 billion. By mid-July, the price had rebounded past $117,000 and settled near $118,400 [2]. Analysts attributed the rebound to reduced macroeconomic uncertainty, as the trade deal signaled a de-escalation of U.S.-EU tensions that had previously dampened investor sentiment [3].

The broader crypto market mirrored Bitcoin’s upward trend, with Ethereum nearing $4,000 and altcoins like SUI, CRO, and HBAR gaining up to 10%. The total crypto market cap rose to $3.97 trillion, reversing a prior dip to $3.87 trillion. However, volatility persisted, with Bitcoin briefly dipping below $118,000 after a failed attempt to surpass $120,000 [4]. The trade agreement’s potential to streamline cross-border trade rules and reduce regulatory friction for crypto firms further fueled optimism. Analysts noted that ETF-related demand had outpaced bearish pressures, reinforcing the positive momentum [5].

Geopolitical risks and upcoming Federal Reserve policy decisions remained focal points for investors. Critics cautioned that the deal’s long-term benefits for crypto remain speculative, emphasizing that sector fundamentals—such as scalability and energy efficiency—will ultimately determine its trajectory [6]. Despite these concerns, the immediate market reaction highlighted the growing interplay between traditional trade policies and digital assets.

As Bitcoin consolidates near $118,000, attention shifts to macroeconomic data and regulatory updates in the U.S. and EU. The trade deal has underscored Bitcoin’s role as a barometer for global economic sentiment, illustrating its responsiveness to geopolitical and trade-related developments [7].

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] [Bitcoin News Today: Bitcoin Soars to $118K on Trump-EU Trade Deal](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-soars-118k-trump-eu-trade-deal-etf-inflows-institutional-demand-drive-rally-2507/)

[3] [Markets Brace for Crypto Crisis: Fed, Earnings and Trade Talks Take Center Stage](https://99bitcoins.com/news/altcoins/markets-brace-for-crypto-crisis-fed-earnings-and-trade-talks-take-center-stage/)

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

[5] [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)

[6] [Bitcoin Rebounds to $118K After Trump's EU Trade Deal](https://x.com/BTCTN/status/1949866401595871722)

[7] [LIVE] Bitcoin Briefly Reclaims $119K as Ethereum Climbs Toward $4K](https://99bitcoins.com/news/altcoins/live-bitcoin-briefly-reclaims-119k-as-ethereum-climbs-toward-4k-best-crypto-to-buy/)