Bitcoin rose above $109,600 on Monday, rising 1.4% after US President Donald Trump unexpectedly prolonged a deadline to impose steep tariffs on EU items, easing market issues and supporting danger property.
The surge adopted Trump’s choice late Sunday to push again the potential introduction of fifty% tariffs on EU imports to July 9.
Simply two days earlier, the president had threatened to enact the tariffs by June 1 because of sluggish progress in commerce negotiations with the EU.
Trump Tariff Delay Indicators Doable Thaw in US-EU Commerce Tensions
The delay adopted a productive name with European Fee President Ursula von der Leyen, who sought further time to safe a good settlement. This de-escalation diminished fears of an imminent commerce struggle, which had beforehand weighed on world markets.
Final month, Trump introduced an preliminary 20% tariff on EU items, however quickly revised it to 10% with a grace interval till early July. The shifting timeline displays the administration’s unpredictable commerce technique, which has continued to rattle world markets.
Nevertheless, buyers welcomed the most recent reprieve, viewing it as an indication of potential decision and improved dialogue between Washington and Brussels.
Market sentiment had already begun to stabilize after a risky stretch in April, when development fears and aggressive commerce posturing prompted a broad sell-off throughout asset courses. Analysts say the pause in tariff escalation has helped carry urge for food for danger, main merchants to rotate into Bitcoin and different cryptocurrencies.
Bitcoin Hit ATH Above $111K on ETF Momentum and Threat-On Sentiment
The transfer in Bitcoin can be tied to broader structural demand. Final week, the asset briefly touched a document excessive of $111,814, buoyed by continued inflows from exchange-traded funds and company buyers.
Spot Bitcoin ETFs noticed web weekly inflows of $2.75b between Could 19 and Could 23, in keeping with knowledge supplier SoSoValue. Ethereum ETFs posted $248m in inflows throughout the identical interval, with no outflows throughout the board.
Over the previous 18 months, Bitcoin has outpaced the S&P 500 by greater than 100 share factors, cementing its function as a high-beta asset that pulls capital throughout risk-on cycles. Traders have more and more adopted the lead of company patrons like MicroStrategy’s Michael Saylor, who helped normalize large-scale Bitcoin accumulation amongst establishments.
Monday’s rally serves as a reminder of how delicate Bitcoin stays to macroeconomic developments, notably shifts in US commerce coverage. Whereas the de-escalation supplied rapid aid, market members stay cautious, conscious of how rapidly sentiment can reverse in response to the following political transfer.
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