Bitcoin Surges to $120K, Ether Nears $4K Amid Trump's EU Tariff Deal Boost

Bitcoin surges to $120K, nearing its all-time high, following a tariff deal between the US and EU. Ether (ETH) rises 3.7% to $3,932, while XRP gains 2% to $3.30. Altcoins like BNB and DOGE also see significant gains. The rally is attributed to reduced macro uncertainty and increased demand for cryptocurrencies.

In a significant market shift, Bitcoin (BTC) surged to nearly $120,000 on July 27, 2025, nearing its all-time high. This rally comes on the heels of a tariff deal between the United States and the European Union, which reduced tariffs on EU goods to 15%. The agreement, confirmed by U.S. President Donald Trump and European Commission President Ursula von der Leyen, lifted market optimism and reduced macro uncertainty, driving the cryptocurrency market higher [1].

Bitcoin, which had been trading between $114,000 and $119,000, approached the $120,000 barrier as traders interpreted the tariff rollback as a signal of reduced macro uncertainty. The Chief Strategy Officer at CoinW, Nassar Al Achkar, noted that Bitcoin maintained a resilient range and rebounded to $119,000 following the tariff announcement [1]. This move was further bolstered by the increased interest from institutions onboarding into the crypto industry and utilizing reserve strategies.

Ether (ETH) also saw a notable rise, increasing by 3.7% to $3,932. This momentum was driven by the asset's increasing adoption as companies set out to build ETH treasuries. The past few weeks have seen heightened interest in Ether as listed companies like SharpLink have begun to build ETH treasuries, which may further boost trading demand [1].

Among the altcoins, BNB (BNB) led large-cap gains, up 6.3%, while Dogecoin (DOGE) climbed 2% to 24 cents, extending its weekly rally to nearly 9%. Solana’s SOL (SOL) and Cardano’s ADA (ADA) also posted modest gains, trading above $190 and 85 cents, respectively [1].

The tariff deal has also been credited with sparking a broader market rally. The S&P 500 surged past 6,400 for the first time in history following the agreement, reflecting heightened optimism about reduced trade tensions. The deal addressed long-standing uncertainties, particularly in technology and manufacturing sectors, where disruptive protectionist policies had previously threatened supply chains [2]. The agreement included reciprocal tariff cuts and $600 billion in new EU investments in the U.S., signaling a shift toward stabilizing transatlantic trade flows.

Investor sentiment was further bolstered by strong corporate earnings and broader macroeconomic stability. Over 80% of S&P 500 companies exceeded profit estimates in the quarter, reinforcing confidence in corporate resilience [2]. The market’s reaction underscored trade policy’s pivotal role in shaping global equity performance, with European indices like the STOXX Europe 600 also rising as traders priced in improved cross-border trade dynamics [2].

The timing of the deal added to its significance, as markets prepared for a critical week of corporate earnings, a Federal Reserve meeting, and inflation data. The S&P 500’s record close highlighted investor focus on growth-oriented narratives rather than cost-of-living concerns, with analysts emphasizing the deal’s role in preserving access to critical supply chains [2].

While the U.S.-EU deal itself lacks direct regulatory ties to crypto, its role in stabilizing global trade expectations has bolstered risk-on sentiment, a factor historically correlated with Bitcoin’s performance [3]. Broader trade negotiations, including the U.S.-Japan 15% tariff agreement and ongoing EU discussions, have further reinforced market confidence. Analysts highlight that such agreements often reduce inflationary pressures and energy market volatility, indirectly supporting crypto liquidity.

Despite these developments, experts caution that crypto market responses to trade agreements remain multifaceted. While reduced geopolitical risks can drive short-term gains, long-term crypto dynamics depend on macroeconomic factors, policy shifts, and technological advancements. The U.S.-EU deal’s primary impact lies in its contribution to a more stable global economic environment, which is beneficial for cryptocurrencies.

References:
[1] https://www.coindesk.com/markets/2025/07/28/bitcoin-zooms-to-usd120k-eth-nears-usd4k-as-trump-s-eu-tariff-deal-lifts-risk-sentiment
[2] https://www.ainvest.com/news/eu-tariff-deal-sparks-500-surge-6-400-record-high-2507/
[3] https://www.ainvest.com/news/bitcoin-news-today-eu-tariff-deal-sparks-bitcoin-2-surge-trade-tensions-ease-2507/