Bitcoin News Today: U.S.-EU Trade Deal Boosts Dollar, Crypto Volatility as Ethereum Up 3%

The U.S.-EU trade agreement signed by President Trump on July 27, 2025, triggered a surge in the U.S. dollar and induced volatility in cryptocurrency markets. The deal, which aims to regulate trade congruence by reducing tariffs and enhancing regulatory harmonization, initially spurred crypto rallies before corrections emerged, underscoring the sector’s sensitivity to macroeconomic shifts [1]. Bitcoin briefly rose above $119,000 amid improved trade optimism but later adjusted to around $118,000, while Ethereum climbed over 3% driven by ETF inflows and institutional demand [3]. The trade deal’s economic implications—reduced import costs and increased cross-border investment—could eventually bolster market confidence, though the immediate dollar strength created a complex backdrop for crypto assets.

The agreement’s impact was compounded by expectations of stable Federal Reserve interest rates (4.25%-4.50%), which typically weigh on non-yielding assets like cryptocurrencies as investors favor cash or bonds [2]. Despite this, Bitcoin demonstrated resilience against large whale sales, such as Galaxy’s 80,000 BTC offload, suggesting a maturing market less susceptible to manipulation [4]. Institutional participation in Ethereum further intensified, with inflows exceeding $2.2 billion and a $78 billion rise in market capitalization, highlighting growing recognition of crypto as a strategic asset rather than a speculative gamble.

Ethereum’s performance aligned with broader market optimism, supported by U.S.-Japan trade talks and Fed policy clarity. Meanwhile, Bitcoin’s single-collateral futures contracts saw heightened trading activity as investors positioned for potential volatility [5]. However, the dollar’s dominance constrained gains in commodities like silver, which struggled to break above $38 amid trade deal optimism [2]. The mixed signals—stronger dollar, stable rates, and improved trade relations—created a fragile correlation between crypto and traditional assets, with crypto prices often lagging equities and commodities in volatile environments [3].

As the Fed’s policy decision approached, traders navigated an evolving landscape where fiat and crypto markets remained interlinked. While a robust dollar typically pressured crypto prices, the long-term economic benefits of the U.S.-EU agreement, such as reduced trade tensions and increased investment, could eventually stabilize markets. For now, the interplay between macroeconomic catalysts and short-term technical indicators continues to define crypto trading dynamics.

Sources:

[1] [U.S. Dollar Rallies As Traders Focus On U.S.-EU Trade Deal](https://www.fxempire.com/forecasts/article/u-s-dollar-rallies-as-traders-focus-on-u-s-eu-trade-deal-analysis-for-eur-usd-gbp-usd-usd-cad-usd-jpy-1536942)

[2] [Silver Price Forecast: XAG/USD Struggles To Hold $38](https://www.fxstreet.com/news/silver-price-forecast-xag-usd-struggles-to-hold-38-as-us-eu-trade-pact-improves-market-mood-202507280523)

[3] [Stock Market Highlights: Sensex Settles 572 Pts Lower](https://m.economictimes.com/markets/stocks/live-blog/bse-sensex-today-live-nifty-stock-market-updates-28-july-2025/liveblog/122942974.cms)

[4] [Why Bitcoin Whales Are Losing Their Grip On The Market](https://tradersunion.com/news/editors-picks/show/399879-bitcoin-whales-losing-their-grip/)

[5] [BTCUSD Single Collateral Futures Contract Trade Ideas](https://www.tradingview.com/symbols/KRAKEN-BTCUSD1%21/ideas/page-4/?contract=BTCUSDQ2025)