According to the latest report, the European Union is in discussion to cut down tariffs on the US, which could bring indirect benefits to Bitcoin. It might fuel another rally in the biggest cryptocurrency, which is already rising through the roof.
(Source: Walter Bloomberg on X)
EU Wants to Revive Relationship with US
The European Union is reportedly looking to lower tariffs on US imports as part of ongoing trade talks with President Trump, according to the Wall Street Journal.
This discussion is likely to avoid escalating trade conflicts and reach a deal before a July 9 deadline.
EU leaders will discuss possible concessions at a meeting in Brussels, including reducing non-tariff barriers, buying more American goods (like natural gas), and working with the US on shared concerns about China’s economic policies.
Trade negotiations sped up after Trump threatened in May to impose 50% tariffs on EU goods. While he later delayed the move, European officials now expect the US to keep 10% baseline tariffs in place. Their new strategy focuses on securing exemptions to limit economic harm.
Reduced trade tension between the EU and the US would likely create a more favorable environment for Bitcoin. When major economies avoid escalating tariffs, it lowers the risk of global economic disruption amid ongoing conflict in the Middle East.
After a 12-day war, Iran and Israel agreed to a ceasefire, providing great relief to global trade.
Bitcoin Strives to Break $120,000 Barrier
This growing stability is expected to boost investor confidence in risk assets like cryptocurrencies. Specifically, successful trade talks could ease inflation concerns by lowering import costs. It would possibly allow central banks to cut interest rates sooner.
Since Bitcoin often rallies when monetary policy becomes less restrictive, this scenario would strengthen its investment case.
Furthermore, Bitcoin’s growing demand among institutional investors propelled the cryptocurrency to achieve new milestones. Recently, BlackRock’s ETF added 3,210 Bitcoin and 22,550 Ethereum to its holdings. Japanese firm Metaplanet bought 1,234 Bitcoin (worth $133 million), now holding more Bitcoin than Tesla.
Separately, GameStop raised $450 million in debt sales and announced plans to use part of the funds to buy Bitcoin as a reserve asset.
Bitcoin surged 4.3% on Monday, completely wiping out its losses from the previous two days. This strong rebound is especially notable because Bitcoin held firmly above the $105,000 support level for two straight days. These signals suggest the current recovery trend could be gaining strength.
At the time of writing, Bitcoin is trading at approximately $107,500, reflecting a 3.17% increase over the past week, raising its value from $104,400 to $107,540, with a market capitalization of $2.13 trillion, according to CoinMarketCap. Some experts believe that Bitcoin might retest $92,000 before breaking the $120,000 barrier in the mid-term.
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