In a remarkable start to the week, the cryptocurrency market surged as U.S. President Donald Trump announced a much-anticipated deal with the European Union to reduce tariffs, sparking optimism across the trading landscape. Bitcoin (BTC) soared to an impressive $120,000, brushing close to its all-time high, while Ether (ETH) edged tantalizingly near the $4,000 mark.
The Trump Effect: Tariff Deal Sparks Market Rally
President Trump’s decision to scale down tariffs on EU imports from a threatened 30% to a more palatable 15% has injected a fresh wave of confidence into global markets. This maneuver seems to have alleviated some of the macroeconomic uncertainties that have been looming over traders like a dark cloud. The announcement not only sent S&P 500 futures up by 0.3% and Dow contracts climbing by 180 points but also propelled Bitcoin to levels not seen for nearly a fortnight. For further insights into Bitcoin’s trajectory, see Bitcoin Price Reaches Pivotal Moment—Is $120K Next?.
“Bitcoin maintained a resilient range and rebounded to $119k after old wallets with tens of thousands of BTC began transferring funds to exchanges,” noted Nassar Al Achkar, Chief Strategy Officer at CoinW, in a Telegram update to CoinDesk. This movement prompted some traders to brace for potential market corrections, yet the cryptocurrency’s robust ascent suggests a bullish sentiment prevailing among market participants.
Ether’s Ascent and the Broader Crypto Surge
Ether hasn’t been left behind in this rally. Rising by 3.7% in the last 24 hours, ETH is rapidly approaching the $4,000 threshold, marking its strongest showing since December. The momentum comes as companies like SharpLink are reportedly building their ETH treasuries, reflecting a growing corporate interest in diversifying into digital assets. Historically, Ether has shown a tendency to outperform Bitcoin in the aftermath of BTC rallies, a pattern that many traders are banking on to continue.
The altcoin market is also buzzing with activity. XRP climbed 2% to $3.30, fueled by speculation around potential ETF approvals. Meanwhile, BNB led the pack of large-cap cryptocurrencies with a 6.3% gain, while Dogecoin added another 2% to its price, extending its rally to nearly 9% over the week. Solana (SOL) and Cardano (ADA) also posted modest gains, trading above $190 and 85 cents, respectively.
Market Sentiment and the Road Ahead
This July has indeed been pivotal for cryptocurrencies. With public companies increasingly raising capital for crypto treasuries and banks racing to accommodate burgeoning demand, many insiders see the current market dynamics as more than just a transient rally. “Markets have been on a tear in July,” remarked Jeff Mei, COO at BTSE. “The passing of the GENIUS Act and cryptocurrencies reaching a collective $4 trillion market capitalization are important milestones for the industry.” Analysts suggest that the Bitcoin market top is nowhere near, even as the price pauses at $120K.
Mei further emphasized the structural shift in investing strategies, noting the scramble among financial institutions to integrate cryptocurrency-related services. With the Federal Reserve meeting on the horizon and further tariff negotiations slated, the market’s trajectory remains contingent on several key factors. An unexpected rate cut could inject even more vigor into both equities and digital assets.
However, as earnings season unfolds and inflation data trickles in, traders are gearing up for a potentially volatile week ahead. Trump’s August 1 deadline for further tariff decisions looms large, raising questions about how these developments will shape the financial landscape.
The crypto market, with its characteristic ebb and flow, is once again at a crossroads. As traders and analysts navigate this complex milieu, the coming weeks promise a fascinating, albeit unpredictable, journey.
Source
This article is based on: Bitcoin Zooms to $120K, ETH Nears $4K as Trump’s EU Tariff Deal Lifts Risk Sentiment
Further Reading
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- Bitcoin Surges to New All-Time High Price Above $112K
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
