Trump EU Deal Fuels Crypto Rally: Are Bulls Back?

2025-07-28
Trump EU Deal Fuels Crypto Rally: Are Bulls Back?

A recent trade agreement between the US and EU has sparked excitement in the crypto world. President Donald Trump’s deal with EU leader Ursula von der Leyen has eased trade tensions, boosting risk assets like cryptocurrencies. 

With Bitcoin nearing $120K and Binance Coin (BNB) hitting a new all-time high, investors are buzzing. Is this the start of a new bull run? Let’s break it down.

sign up on Bitrue and get prize

Want to trade crypto while reading our latest news? Head over to Bitrue and explore your options today!

The US-EU Trade Deal Breakdown

In a productive meeting in Turnberry, Scotland, Trump and von der Leyen hashed out a framework to strengthen US-EU trade ties. 

The EU agreed to buy $750 billion in US energy and invest $600 billion in various US projects. This deal aims to reduce the US trade deficit while fostering economic cooperation.

Tariff Tensions Eased

Initially, Trump announced 30% tariffs on EU goods (50% on steel and aluminum), set to kick in on August 1. 

After negotiations, he lowered them to a flat 15%, calming markets. This reduction eased fears of a trade war, which had rattled investors earlier this year.

Read Also: Trump vs Powell: Is MAGA Pressure Shaping the Next Fed Move?

Crypto Market’s Reaction

The crypto market loves clarity, and this deal was delivered. Bitcoin (BTC) jumped slightly, trading above $119,000, just shy of its all-time high of $119,000. 

BTC:USD.jpeg

The relief from lower tariffs and boosted US dollar liquidity has fueled optimism, pushing BTC closer to a major milestone.

BNB Steals the Show

Binance Coin (BNB) was the star, surging to a new all-time high above $825. This price pump helped BNB reclaim its spot as the fifth-largest cryptocurrency, overtaking Solana (SOL). The rally reflects renewed investor confidence in risk assets post-deal.

Ethereum and Others Join the Party

Ethereum (ETH) also saw gains, rising over 3% to hover near $3,850. Other major cryptos like XRP and Solana followed suit, with gains of 2-8% after the news. 

The market’s total capitalization climbed by $100 billion in just 12 hours, signaling a strong risk-on sentiment.

Why Tariffs Matter to Crypto

Crypto markets have historically been sensitive to trade policies. In April, Trump’s sweeping tariffs on multiple countries caused a market dip, with Bitcoin dropping to $76,000. 

However, the market has grown more resilient, and recent tariff news triggers less panic and quicker recoveries.

Read Also: Trump Media Just Bought $2 Billion in Bitcoin - Will Solana Be Next?

Trade Deals Boost Risk Appetite

Lower tariffs and trade stability reduce economic uncertainty, encouraging investors to dive into high-beta assets like crypto. 

The US-EU deal’s massive energy and investment commitments signal stronger economic ties, which could weaken the US dollar and make Bitcoin a go-to hedge.

Broader Market Context

Bitcoin’s rally isn’t just about tariffs. Spot Bitcoin ETFs saw $2.75 billion in net inflows from May 19-23, while Ethereum ETFs added $248 million. 

Institutional demand, combined with corporate buying from firms like Strategy, is tightening Bitcoin’s supply, pushing prices higher.

Macro Factors at Play

The crypto surge aligns with broader market optimism. The S&P 500 and Nasdaq rose 2% after the tariff relief, mirroring crypto’s gains. 

Analysts note that a weaker US dollar and expectations of Federal Reserve rate cuts could further boost crypto as an inflation hedge.

Read Also: Trump Praises Coin Center Director's Senate Testimony: Ultimate Bitcoin Explanation

What’s Next for Crypto?

Short-Term Outlook

The tariff pause and trade deal have sparked a relief rally, but volatility looms. Upcoming US GDP and inflation data could sway markets

If Bitcoin breaks $120,000, it might test its all-time high of $119,000 again, potentially triggering a short squeeze.

Long-Term Bullish Signals

Experts like BitMEX’s Arthur Hayes see tariffs driving interest in non-sovereign assets like Bitcoin. 

If the US dollar weakens due to trade deficits, BTC could hit $250,000 long-term. Institutional adoption and ETF inflows further support a bullish case.

Conclusion

Trump’s EU trade deal has lit a fire under the crypto market, with Bitcoin eyeing $120K and BNB smashing records. Lower tariffs and massive EU investments have eased trade war fears, boosting risk appetite. 

While short-term volatility is possible, institutional demand and macro trends point to a potential bull run. Keep an eye on Bitcoin’s next move, $120K could be just the start.

FAQ

Why did the US-EU trade deal impact crypto prices?

The deal eased tariff tensions and boosted risk appetite, leading investors to move into assets like Bitcoin and altcoins.

How close is Bitcoin to breaking its all-time high?

Bitcoin is trading above $119K, just shy of the $120K mark, which could trigger a breakout if breached.

Why did BNB rally harder than other coins?

BNB hit a new all-time high above $825, reclaiming its spot as the fifth-largest crypto due to renewed investor confidence.

Are ETFs influencing the crypto rally?

Yes, Bitcoin ETFs saw $2.75B in inflows, and Ethereum ETFs added $248M, signaling strong institutional demand.

Could tariffs still affect crypto in the future?

Absolutely. While reduced tariffs fueled this rally, future trade tensions or economic shifts could trigger volatility.


 

Bitrue Official Website: 

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.

Disclaimer: The content of this article does not constitute financial or investment advice.

Register now to claim a 1012 USDT newcomer's gift package

Join Bitrue for exclusive rewards

Register Now
register

Recommended

Crypto and Casinos: The Viral Connection You Can’t Ignore
Crypto and Casinos: The Viral Connection You Can’t Ignore

A professional comparison of crypto and traditional online casinos: benefits, challenges, and regulatory concerns. Understand the risks and stay informed.

2025-07-30Read