- Bitcoin is surging toward $118,500 after news of a possible US-EU trade deal.
- Earlier in the day, the crypto market crashed due to Trump’s tariff threats.
- The market is now recovering as traders respond to improved global trade sentiment.
Bitcoin is leading a market-wide recovery after reports of an imminent US-EU trade agreement surfaced. The BTC price has surged toward $118,500 following an early-day slump triggered by tariff tensions. According to CoinMarketCap data, Bitcoin shows strong hourly gains as momentum returns to the crypto market.
Daily trading volumes spiked to $64.45 billion, while Bitcoin’s market capitalization reached $2.3 trillion. Despite falling earlier in the day, BTC has posted a 1% gain over the last seven days and is up nearly 20% over the past month. The rally marks a significant turnaround after the market shed nearly $40 billion earlier on fears of higher global tariffs.
Bitcoin’s dominance remains firm at 60.1%, with Ethereum trailing at 11.2%. The broader market attempts to follow Bitcoin’s lead as traders respond to shifting macroeconomic sentiment.
Trump’s Tariff Threat Reversed by Negotiation Progress
The rally was sparked by a Financial Times report confirming progress on a US-EU trade deal. Sources indicate the deal would implement a flat 15% tariff on European exports to the US. Currently, EU goods face a 10% tariff, but the rate could spike to 30% without a deal.
Tensions escalated in mid-July when former US President Donald Trump announced plans for a 30% tariff on EU products starting August 1. This triggered uncertainty across global markets and contributed to sharp losses in crypto prices.
However, the EU responded by opening negotiations and preparing retaliatory measures if talks failed. With the deadline approaching, the potential for a deal is renewing investor confidence, particularly in Bitcoin as a macro hedge.
Crypto Market Eyes BTC as Sentiment Turns
The global crypto market is now looking to Bitcoin to anchor a recovery from earlier losses. The rally speed and high trading volumes suggest strong participation from institutional and retail investors.
Bitcoin’s movement often sets the pace for the broader market. Altcoins are showing signs of recovery, attempting to reverse the earlier downturn triggered by tariff fears. Analysts will be watching closely in the days ahead as the August 1 deadline approaches and trade negotiations continue.
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