Bitcoin is the biggest gainer as reports of an imminent US-EU trade deal emerge ahead of Donald Trump’s August 1 deadline. The BTC price is marching on toward $118,500 while the rest of the market makes a valiant attempt to mirror the largest cryptocurrency.
BTC Price Gains After A Rough Trading Day
According to CoinMarketCap data, Bitcoin price is showing early signs of a rally after racking impressive hourly gains. At press time, the largest cryptocurrency is barreling toward the $118,500 mark in a flash rally driven by new macroeconomic sentiment.
The flash rally came on the back of daily trading volumes of $64.45 billion, while the market capitalization spiked to $2.3 trillion. On the seven-day chart, BTC price gained a modest 1% but over a month, the largest cryptocurrency has risen by nearly 20%.
Early in the day, Bitcoin and the rest of the crypto market crashed amid Donald Trump’s threats to impose higher tariffs on countries. Leading cryptocurrencies tumbled, with the global cryptocurrency market capitalization shedding nearly $40 billion.
Now, cryptocurrency prices are trying to latch onto Bitcoin’s rally to erase losses from early in the day. Currently, Bitcoin’s dominance is holding the 60.1% mark while Ethereum’s is pegged at 11.2%.
US-EU Trade Deal Stokes Optimism For Crypto Prices
A Financial Times report revealed that the EU and US are nearing a trade deal that will impose 15% tariffs on all European tariffs. At the moment, EU exporters are paying increased tariffs on certain goods sent to the US since April, but if the deal falls through, the bloc could pay duties as high as 30%.
In mid-July, Trump announced 30% tariffs on the EU starting on August 1 to eliminate trade disparities. At the time, the EU President von der Leyen noted that the economic bloc will open negotiations with the US to reach a middle ground.
However, the report notes that the EU is preparing a package of retaliatory tariffs if parties are unable to reach an agreement by August 1. Meanwhile, the US and Japan have reached a trade deal, stoking enthusiasm for a similar deal with the EU. Previously, Trump’s dismissal of tariff deadline extensions sent BTC price and other cryptocurrencies tumbling.
Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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