TLDR
- Bitcoin climbed back above $109,600 after Trump delayed EU tariff implementation from June 1 to July 9
- The delay came following a call with European Commission President Ursula von der Leyen who requested more time for trade talks
- U.S. equity futures rose with S&P 500 up 0.9%, Dow up 0.8%, and Nasdaq-100 up 1% on the news
- Bitcoin derivatives showed increased activity with 24-hour open interest up 2.59% to $76.66 billion
- Analysts maintain price targets around $120,000 for Bitcoin as institutional demand continues
Bitcoin has climbed back above $109,600 following President Donald Trump’s decision to extend the deadline for implementing proposed tariffs on European Union goods. The delay provides temporary relief from escalating trade tensions that had weighed on markets.
The recovery came after Trump announced on Sunday that he had agreed to postpone a June 1 deadline for imposing 50% tariffs on EU imports. The new deadline has been set for July 9, 2025.
🚨 LATEST: Trump delays 50% EU tariffs until July 9 🇺🇸🇪🇺
S&P 500 futures up 1.28%, Nasdaq futures up 1.43% from Friday’s close 📈 pic.twitter.com/4XbAQKnHDR
— Trader Edge (@Pro_Trader_Edge) May 26, 2025
Trump’s decision followed a phone call with European Commission President Ursula von der Leyen. She had requested additional time to finalize trade negotiations between the two economic blocs.
The cryptocurrency rose 1.4% in the past day to trade at $109,637 during early Asian trading hours on May 26. This represents a recovery from recent volatility that saw Bitcoin briefly reach an all-time high of $111,814 on May 22 before falling to approximately $107,500.
Bitcoin remains up 15% over the past 30 days despite the recent fluctuations. The digital asset has shown increased sensitivity to geopolitical developments and trade policy announcements.
U.S. equity futures responded positively to the tariff delay announcement. S&P 500 futures gained 0.9%, while Dow futures rose 0.8% and Nasdaq-100 futures increased 1% in early Monday trading.
Derivatives Activity Increases
Bitcoin derivatives markets showed renewed activity following the announcement. Data from Coinglass indicates that 24-hour open interest increased 2.59% to $76.66 billion.
Trading volume in Bitcoin derivatives rose 10.85% to $89.91 billion over the same period. Rising derivatives volume and open interest typically indicate renewed trader confidence and position building.
The increase in derivatives activity often signals anticipation of volatility or upward price movement among professional traders.
Trade Tensions Create Market Uncertainty
The tariff situation had created uncertainty across global markets in recent days. Trump initially proposed a 20% tariff on most EU imports in April before reducing it to 10% to allow time for negotiations.
On Friday, the president threatened to raise tariffs to 50% by June 1 if talks stalled. This announcement caused Bitcoin to fall nearly 2% as risk appetite declined.
The EU exported more than $600 billion in goods to the U.S. last year. The bloc had paused its own retaliatory tariffs on $23 billion in U.S. imports while consulting on additional measures targeting $95 billion worth of goods.
Gold prices declined 0.3% to $3,346.59 an ounce as risk appetite improved. The move away from traditional safe-haven assets has benefited Bitcoin, which is often viewed as a speculative risk asset.
Ryan McMillin, chief investment officer at Merkle Tree Capital, noted that Bitcoin has been trading more in line with gold lately. He cited its appeal as a non-sovereign asset and inflation hedge.
McMillin expects Bitcoin to push toward $120,000 and beyond in the coming months. This price target is supported by other analysts including Pav Hundal from crypto exchange Swyftx.
Options traders on Deribit have positioned over half a billion dollars in notional volume at the $120,000 level for the end of June contract. This indicates strong bullish sentiment among institutional traders.
The broader cryptocurrency market remained stable on Sunday. Ethereum hovered near $2,550, while Solana and Avalanche posted modest gains between 1% and 2%.
Traders are now weighing geopolitical risks against ongoing institutional inflows and upcoming macroeconomic data. The market awaits this week’s U.S. core PCE inflation print, expected Friday.
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