Bitcoin price surged above $109,400 in the early Asian trading hours on Monday, hitting its highest level since Friday’s close. Critical Derivative trading metrics suggest the uptick is closely tied to investor reactions to U.S. President Donald Trump’s Sunday evening update regarding EU trade tariffs.
Bitcoin (BTC) Nears $110K as Trump Delays 50% Tariff on EU Goods Until July 9
Bitcoin price came within whiskers of $110,000 resistance in the early hours of Monday as markets reacted to fresh social media posts from US President Donald Trump.
At approximately 6 PM EST on Sunday, Trump announced via Truth Social that the 50% tariff on European Union imports—initially slated for June 1—would now be delayed until July 9, 2025.
“I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension… I agreed. The Commission President said that talks will begin rapidly.” – Trump posted on TruthSocial on Sunday.
The announcement followed a direct phone call between Trump and von der Leyen earlier in the day.
In response, Ursula, von der Leyen, President of the European Commission took to X, echoed Trump’s sentiment, commenting “good call” and noting that “Europe is ready to advance talks swiftly and decisively.”
The decision to extend the deadline comes after Trump shocked markets on Friday by threatening to impose 50% duties on EU goods.
That announcement had initially rattled both traditional and crypto markets, as investors digested the prospect of renewed trade wars.
Trump’s updated stance now gives both sides a six-week window to reach a broader trade agreement, potentially de-escalating tensions that had been brewing since his April call for a 20% “reciprocal” tariff, which he later paused for 90 days.
Historically critical of the EU, Trump cited longstanding trade deficits and regulatory imbalances, including value-added taxes and European antitrust actions against U.S. tech companies, as reasons for the aggressive tariffs.
However, Sunday’s shift in tone appears to have injected confidence back into risk markets, with Bitcoin price reacting accordingly. Coingecko data shows that BTC price rose 1.5% to hit $109,400 at press time on Monday.
While BTC is yet to breach the $110,000 resistance, critical derivatives trading metric reveal strong breakout signals.
Derivatives Data Shows Smart Money Position Ahead of Volatility
Bitcoin price action after Trump announced the decision to delay tariffs on EU shows a clear shift in sentiment among futures traders. Insights from critical Bitcoin derivatives trading metrics further hint that majority of short-term traders placed more aggressive upside bets after the Trump’s post on Sunday.
According to Coinglass, BTC Open Interest (OI) had stalled below $75 billion after last week’s high of $111,800 was rejected. That pause in derivatives activity came amid uncertainty sparked by Trump’s initial tariff threats on Friday.
However, within hours of the tariff postponement on Sunday, Bitcoin markets experienced a sharp uptick in leverage demand. At press time on Monday, BTC Funding Rate has risen to 0.00076%, up sharply from 0.0025% during Sunday’s open. The funding rate is a critical on-chain metric that reflects the cost of maintaining long positions in perpetual futures contracts.
A rising funding rate implies that more traders are willing to pay a premium to keep their bullish bets open, demonstrating conviction in near-term price appreciation. Historically, such moves often precede major capital inflows into Bitcoin, especially when aligned with macro catalysts.
Trump’s Announcement May Have Sparked Risk-On Sentiment
The alignment of Trump’s more conciliatory tariff stance with rising funding rates signals a key sentiment shift.
Investors appear to be interpreting the delay as a risk-on trigger, positioning ahead of anticipated capital inflows. This narrative is further supported by recent activity from institutional players.
On Sunday, Michael Saylor, Chairman of MicroStrategy, hinted at fresh BTC acquisitions via a cryptic post on X (formerly Twitter), which read “I only buy bitcoin with money I can’t afford to lose.”
Strategy is currently the largest public holder of Bitcoin with over 500,000 BTC in custody.
Aligning with previous weeks, where Saylor’s buy signals have preceded speculative upside in both spot BTC prices and derivatives activity, both factors are now currently active.
The combination of Trump’s 6-week negotiation window with the EU, positive funding rate, and signals of institutional inflows, bullish speculators may now set sights on the $120,000 mark as the next major psychological target for BTC price.
Analyst Warns of a Potential Red Week for Bitcoin (BTC)
An analyst with the screen name “@CarpeNoctom” posted his observations on Bitcoin’s recent price action. After seven weeks of up-close weekly candelsticks, CarpeNoctom added that an 8-week streak of green weekly closes has occurred only three times since 2014 and a 9-week positive streak has “never occurred.”
The expert added that following 8 consecutive positive weekly closes, “the market has historically been negative one week later, but has always been positive 6 months and 1 year later.”
Frequently Asked Questions (FAQs)
Trump delayed the tariff after a call with EU Commission President von der Leyen, allowing more time for trade talks.
Bitcoin price surged past $109,400 as investor sentiment improved after the delay announcement, boosting market confidence.
It shows traders are paying more to keep long positions open, signaling strong bullish conviction in BTC’s price outlook.
Coingape Staff
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