Bitcoin Zooms to $120K, ETH Nears $4K as Trump’s EU Tariff Deal Lifts Risk Sentiment

Markets kicked off the week with a renewed wave of optimism after U.S. President Donald Trump confirmed a tariff deal with the European Union, scaling levies down to 15% from the previously threatened 30%.

The announcement sent S&P 500 futures up 0.3%, Dow contracts higher by 180 points and Bitcoin (BTC) to nearly $120,000 for the first time in nearly two weeks — just under 5% shy of its all-time high.

Bitcoin, which had spent the past week trading between $114,000 and $119,000 neared the $120,000 barrier as traders interpreted Trump’s tariff rollback as a signal of reduced macro uncertainty.

“Bitcoin maintained a resilient range and rebounded to $119k after old wallets with tens of thousands of BTC began transferring funds to exchanges, which led some traders to fear a market correction,” Nassar Al Achkar, Chief Strategy Officer at CoinW, said in a Telegram note to CoinDesk.

“Numerous institutions continue to onboard into the crypto industry and utilize reserve strategies, showcasing strong demand against recent surges of stock prices,” he added.

Ether (ETH) rose 3.7% in 24 hours to $3,932, with momentum building ahead of the $4,000 mark in its highest price range since December. Interest in the asset has increased in the past few weeks as listed companies, such as SharpLink, set out to build ETH treasuries.

Meanwhile, past market cycles typically show a period of ETH outperformance after bitcoin rallies, which may further be bouying trading demand.

XRP (XRP) gained 2% to $3.30, continuing its rebound after recent volatility and ETF speculation.

Among altcoins, BNB (BNB) led large-cap gains, up 6.3%, while Dogecoin (DOGE) climbed 2% to 24 cents extending its weekly rally to nearly 9%. Solana’s SOL (SOL) and Cardano’s ADA (ADA) posted modest gains, trading above $190 and 85 cents, respectively.

July has marked a turning point in mainstream adoption. With public companies raising capital for crypto treasuries and banks rushing to meet demand, Jeff Mei, COO at BTSE, sees this as more than a rally, terming it a structural shift in general crypto investing strategies.

“Markets have been on a tear in July — the passing of the GENIUS Act and cryptocurrencies reaching a collective $4 trillion market capitalization are important milestones for the industry,” Mei said. “We are seeing an incredible number of companies raising money on public markets to adopt crypto treasury strategies. Banks and other financial institutions are scrambling to roll out cryptocurrency-related services to meet increasing demand.”

Mei added that the upcoming Fed meeting and tariff negotiations could serve as key inflection points, with an earlier-than-expected rate cut potentially fueling another leg higher for both equities and digital assets.

Still, with earnings season, inflation data, and Trump’s August 1 tariff deadline on the calendar, traders are likely bracing for a volatile week.