Bitcoin Approaches $120K as Trump-EU Tariff Deal Sparks Market Optimism

Bitcoin edged closer to the $120,000 mark on Monday, buoyed by renewed market confidence following a surprise tariff rollback from U.S. President Donald Trump. The move was interpreted by traders as a sign of easing macroeconomic headwinds.

Trump’s announcement confirmed a revised trade agreement with the European Union, lowering proposed tariffs from 30% to 15%. The news triggered a broad-based risk-on rally — S&P 500 futures rose 0.3%, Dow Jones futures gained 180 points, and Bitcoin (BTC) surged to $118,455, nearing its two-week high.

“Bitcoin maintained a tight range last week and rebounded sharply to $119K after long-dormant wallets began moving funds to exchanges — a development that initially sparked correction fears,” said Nassar Al Achkar, Chief Strategy Officer at CoinW, in a note to CoinDesk. “Despite that, institutional interest remains strong, with reserve strategies gaining traction even as equity prices rise.”

Ethereum, XRP Lead Altcoin Momentum

Ethereum (ETH) jumped 3.7% over the past 24 hours to $3,932 — its highest level since December — as momentum builds toward the key $4,000 threshold. Analysts note a growing interest in ETH from public companies, such as SharpLink, that are increasingly holding ETH in treasury.

Historically, ETH tends to outperform in the weeks following a Bitcoin rally — a trend that may be fueling renewed trading activity in the asset.

XRP (XRP) also climbed 2% to $3.30, extending its recovery rally amid persistent speculation around a potential spot ETF approval. Other major altcoins posted solid gains: Binance Coin (BNB) rose 6.3%, Dogecoin (DOGE) added 2% to $0.24, while Solana (SOL) and Cardano (ADA) saw more modest advances above $190 and $0.85, respectively.

Crypto Adoption Enters Structural Phase

The broader crypto market continues to benefit from accelerating institutional adoption. July has seen a wave of public capital raises aimed at building corporate crypto treasuries, while banks and fintechs scramble to meet surging demand.

“We’re witnessing more than just a rally — this is a structural shift in how institutions are integrating crypto into core financial strategy,” said Jeff Mei, COO at BTSE. “The GENIUS Act and the $4 trillion total crypto market cap are major milestones. We expect more public companies to follow suit in adopting reserve strategies involving digital assets.”

Looking Ahead: Fed, Inflation & Tariff Deadlines

Despite the bullish sentiment, traders remain cautious heading into a data-heavy week. The upcoming Federal Reserve meeting, inflation reports, and Trump’s August 1 tariff enforcement deadline could inject fresh volatility into both crypto and equity markets.

An earlier-than-expected rate cut by the Fed could serve as a key bullish trigger — potentially driving another leg up across risk assets.