Record-shattering Bitcoin surge past $120K following Trump's announced largest trade agreement yet!
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The historic U.S.-EU trade deal, announced in July 2025, has had a significant positive impact on both traditional markets and cryptocurrencies. The agreement, which took place at Donald Trump's golf resort in western Scotland, has reduced tariffs, eased global economic tensions, and restored investor confidence, leading to a broad rally across asset classes.
Traditional Markets Surge
Following the announcement, major U.S. equity indices surged sharply. The S&P 500 surpassed the 6,400 mark, Dow Jones futures rose by 180 points, and the Nasdaq 100 increased by 0.4%. The deal, which capped U.S. tariffs on EU imports at 15% and secured large-scale energy purchases worth $750 billion, alleviated fears of a transatlantic trade war and macroeconomic uncertainty, stabilizing traditional markets.
Cryptocurrencies Rally
In the cryptocurrency market, Bitcoin surged to a 12-month high near $120,000, marking a roughly 12% price increase in response to the deal. Ethereum rose over 3.4%–3.5% to trade around $3,900–$3,930, while Binance Coin recorded a 7% daily gain. The rally was driven by renewed risk appetite as the deal lowered geopolitical risk and reduced volatility, encouraging capital flows into risk-on assets, including digital currencies.
The market also saw heightened trading activity and some liquidations, reflecting the sudden shift in sentiment and increased volatility despite the overall bullish trend. Losses from liquidations amounted to more than $255.81 million, with over 94,542 traders being liquidated in the past 24 hours.
Long-term Impact and Significance
The U.S.-EU trade deal has enabled a more stable geopolitical baseline, reducing "tail risks" that had previously deterred institutional investment in cryptocurrencies. This potentially fosters long-term adoption and integration of crypto as hybrid assets bridging traditional risk and hedging roles.
This event marked a pivotal moment for the crypto markets, intertwining geopolitical pragmatism and regulatory clarity with investor confidence. The Crypto Fear and Greed Index ticked up to 67, returning the index to "Greed" territory, indicating a bullish sentiment in the market.
The shifts in the crypto market potentially set the stage for more sustainable upside, as the deal has removed a negative "tail risk" event, according to Thomas J. Lee, the CIO & Portfolio Manager at Fundstrat Capital. Von der Leyen stated that the deal will bring stability and predictability to the global economic landscape.
In summary, the U.S.-EU trade deal sparked a strong positive reaction, fueling rallies across traditional equity markets and cryptocurrencies, notably BTC, ETH, and BNB, by reducing tariff uncertainty and improving the global economic outlook.
- The historic U.S.-EU trade deal, in July 2025, not only positively impacted traditional markets but also contributed to a crypto market rally, with Bitcoin surging to a 12-month high near $120,000.
- Ethereum also saw a rise, going over 3.4%–3.5% to trade around $3,900–$3,930, while Binance Coin recorded a 7% daily gain, in response to the deal.
- The renewed risk appetite and reduced volatility due to the deal encouraged capital flows into risk-on assets, including digital currencies.
- The U.S.-EU trade deal potentially fosters long-term adoption and integration of crypto as hybrid assets bridging traditional risk and hedging roles, according to Thomas J. Lee, the CIO & Portfolio Manager at Fundstrat Capital.
- The Crypto Fear and Greed Index ticked up to 67, returning the index to "Greed" territory, indicating a bullish sentiment in the market, signifying potential sustainable upside for both traditional and cryptocurrency markets.
