Bitcoin’s price touched \$118,500 after another volatile session, this time fuelled by potential US-EU trading agreements. In the meantime, BTC’s dominance continues to increase above the \$31,000 mark as anticipation ramps up for the August 1 deadline set by Trump.
Alternative coins are doing their best to catch up to BTC, but it seems it will take more time for the rest of the crypto market to catch up with the first coin.
BTC Price Gains After A Rough Trading Day
Based on data from CoinMarketCap, Bitcoin is showing early signs of a potential rally and is breaking hourly gains records. As of now, BTC is surging towards the \$118,500 mark, a price level that is currently being targeted due to a change in macroeconomic factors.
This is coming on the back of a surge in daily volume, which is now at \$64.45 billion. Bitcoin’s market cap with the recent surge now stands at \$2.3 trillion. BTC saw a modest weekly gain of 1% which is also accompanied with a 20% surge in the last month.
Earlier in the day, the market experienced a sudden drop due to Donald Trump’s announcement of higher tariffs, which saw a \$40 billion market cap loss. Currently, Bitcoin along with altcoins is attempting to gain momentum and BTC is currently leading the way to recovery. BTC dominance stands at 60.1% and Ethereum is at 11.2%.
US-EU Trade Deal Stokes Optimism For Crypto Prices
As reported recently by Financial Times, the US and the European Union are nearing completion of a trade deal which would impose a 15% tariff on all European exports. As of April, EU exporters are subjected to high tariffs on certain goods. If this deal falls through, those tariffs could increase to 30%.
Former President Donald Trump declared in mid-July that a 30% tariff on EU goods would take effect on August 1 in an attempt to attempt to resolve an uneven trade relationship. To this, EU President Ursula von der Leyen replied that the bloc would be willing to negotiate a solution with the US.
The EU, on the other hand, seems to be preparing a counter-tariff package in the event that no deal is struck. In contrast, the US has already completed a trade agreement with Japan, which is heightening hopes for a similar agreement with Europe. A Trump-era refusal to extend deadlines in the past has, in the past, caused a dramatic decline in Bitcoin and the broader crypto market.
