Ethereum News Today: Bitcoin hits $120,000, Ethereum up 3.7% near $4,000 on U.S.-EU tariff deal optimism

Bitcoin surged past $120,000 on major crypto exchanges amid a wave of optimism driven by a landmark U.S.-EU tariff agreement, while Ethereum approached $4,000 as risk appetite expanded globally. The rally was fueled by President Donald Trump’s announcement of reduced tariffs, which alleviated trade tensions and boosted market confidence. Over $35 billion in Bitcoin transactions occurred in 24 hours, reflecting heightened investor activity, and Ethereum climbed 3.7% to $3,932, nearing its record high [1].

The tariff deal, struck during Trump’s meeting with EU Commission President Ursula von der Leyen in Scotland, outlined a framework for $750 billion in U.S. energy exports and $600 billion in EU investments. Trump slashed previously announced 30% tariffs to 15% on most goods, though steel and aluminum tariffs remain at 50%. The agreement signaled reduced economic uncertainty, prompting a shift toward riskier assets. Traders swiftly allocated capital to cryptocurrencies, with Bitcoin breaking above $119,000 after weeks of consolidation and Ethereum mirroring broader market enthusiasm [2].

Institutional interest further amplified the momentum. U.S. Ethereum ETFs attracted $1.4 billion in net inflows between July 21–24, contrasting with Bitcoin’s marginal outflows. Binance Research noted that Ethereum’s institutional adoption had accelerated, with $4.67 billion in ETF inflows for July. This trend highlighted growing acceptance of altcoins as diversified holdings. Meanwhile, altcoins like Optimism (OP) and PancakeSwap (CAKE) surged 16% and 16.30%, respectively, reflecting speculative enthusiasm [3].

The market also speculated on a potential "Strategic Bitcoin Reserve," a proposal to treat Bitcoin as a digital gold standard. Such a move, if implemented, could solidify Bitcoin’s role as a long-term store of value, attracting institutional and governmental adoption. Analysts observed that governments and institutions were increasingly building Bitcoin reserves, which could sustain demand even amid volatile conditions [4].

However, altcoin markets exhibited mixed signals. Binance Coin (BNB) hit a record $800 after a $90 million treasury allocation by Nano Labs, yet the sector faced a $100 billion market cap correction, with XRP and Dogecoin plummeting double digits. Binance analysts warned that while Ethereum’s ETF performance remained bullish, the ETH/BTC ratio had dropped 7.4% from its peak, suggesting a potential reallocation of capital between the top two assets [5].

Retail investors also fueled the rally, with meme stocks like Kohl’s and GoPro surging by 90% and 49%, respectively. This social media-driven speculation mirrored the 2021 GameStop phenomenon and aligned with the U.S.-EU deal’s role in easing macroeconomic uncertainty. The S&P 500 reached 6,358.91, driven by AI-related earnings and reduced trade friction [6].

Looking ahead, the market remains cautiously optimistic. Bitcoin’s dominance rebounded above 60%, and analysts are monitoring its ability to sustain a breakout above $120,000. Ethereum’s $4,000 level is seen as a critical threshold; if ETH holds above $3,800, the target becomes more attainable. However, volatility persists, with traders emphasizing the need for caution amid uneven altcoin performance [7].

Source:

[1] [Bitcoin Touches $120K, Ethereum Eyes $4K After US-EU Tariff Deal](https://coinmarketcap.com/community/articles/68874d9b361abe5ce4db1fd9/)

[2] [Bitcoin Zooms to $120K, ETH Nears $4K as Trump's EU Tariff Deal Lifts Risk Sentiment](https://ca.finance.yahoo.com/quote/TURBO33724-USD/news/)

[3] [Ethereum (ETH) Price Forecasts, Predictions & News](https://www.fxempire.com/crypto/ethereum/news)

[4] [BNB Hits New High, Meme Stocks Soar, ETH ETFs See Inflows](https://cryptopotato.com/bnb-hits-new-high-meme-stocks-soar-eth-etfs-see-inflows-binance-report/?amp)

[5] [Markets roar as S&P 500 crosses 6400 and Bitcoin retakes](https://www.coinlive.com/en/news-flash/861336)

[6] [ONCE ETHEREUM BREAKS $4000, ALTCOINS WILL EXPLODE!](https://www.binance.com/en-IN/square/post/27519379581153)