TLDR
- Bitcoin price nears $118,500 after strong hourly gains and $64.45B in daily volume.
- BTC dominance holds at 60.1% while Ethereum stands at 11.2% amid market rebound.
- Crypto market regains $40B lost earlier following US-EU trade deal progress.
- Bitcoin posts nearly 20% gain over the past month despite early-day market dip.
Bitcoin climbed toward the $118,500 level after news emerged that the United States and the European Union are close to a trade deal. The cryptocurrency rose sharply during afternoon trading following a rocky start earlier in the day, triggered by tariff concerns.
The market responded quickly to optimism around a 15% tariff agreement that may avoid steeper duties proposed by the US ahead of the August 1 deadline. Bitcoin led the rally, showing stronger gains than other major cryptocurrencies as investors shifted back into risk assets.
US-EU Trade Deal Progress Boosts Investor Confidence
A Financial Times report revealed that the United States and the European Union are close to finalizing a trade deal that would set 15% tariffs on most European goods. Currently, EU exporters are already facing higher duties on select products shipped to the US since April. If the negotiations fail, the tariff rate could rise to 30%, increasing pressure on European industries.
In July, President Donald Trump announced that 30% tariffs would take effect on August 1, aimed at reducing trade imbalances. In response, European Commission President Ursula von der Leyen stated that the EU would enter negotiations with the US to find a middle ground. However, the EU is also preparing a package of retaliatory tariffs in case the deal is not finalized before the deadline.
đź’ĄBREAKING:
US AND EU CLOSE IN ON 15% TARIFF DEAL – FT.
VERY BULLISH FOR MARKETS!!! pic.twitter.com/CEMDxvjBSa
— Crypto Rover (@rovercrc) July 23, 2025
The recent trade deal between the US and Japan has added momentum to talks with the EU. It has raised hopes among investors that a similar outcome could be reached. Earlier, Trump’s refusal to extend the tariff deadline caused a drop in Bitcoin and other cryptocurrency prices.
Bitcoin Recovers Sharply Following Early Market Dip
Bitcoin’s price showed signs of a strong recovery after early losses, climbing toward the $118,500 mark. Data from CoinMarketCap revealed a surge in hourly gains, with daily trading volumes reaching $64.45 billion.
This recovery followed a sharp decline earlier in the day when global markets reacted to President Donald Trump’s threats of imposing 30% tariffs on EU goods. The broader crypto market fell in response, losing nearly $40 billion in market capitalization.
Reports of progress toward a US-EU trade agreement helped shift market sentiment. Investors responded to news that both sides were nearing a deal that would implement a 15% tariff on most European imports instead of higher duties. This development boosted confidence and triggered a rally in Bitcoin and other digital assets.
Over the last month, Bitcoin has gained nearly 20%, despite only posting a 1% rise over the past week. The cryptocurrency now holds a market capitalization of $2.3 trillion. Bitcoin’s dominance stands at 60.1%, while Ethereum trails at 11.2%, with many other coins following Bitcoin’s upward trend.
Global Markets React to Trade Developments and Bitcoin Surge
Equity markets across Asia, Europe, and the US responded positively to trade deal optimism. The MSCI World Index reached a new all-time high, while US futures also showed gains. Japan’s stock markets rose nearly 2% after the US finalized a separate trade deal with Tokyo.
The US dollar fell for the fifth straight day following comments from Commerce Secretary Howard Lutnick, who said Federal Reserve Chair Jerome Powell “has got to go.” The Federal Reserve has been at the center of political attention, and President Trump is expected to visit its construction site soon.
While the US has already secured a deal with Japan, talks are ongoing with other nations including South Korea and China. South Korea is reportedly discussing an investment partnership similar to Japan’s new agreement. The US and China are set to resume trade negotiations in Stockholm next week.
The ongoing reduction in trade uncertainty appears to be driving investor confidence back into both traditional markets and cryptocurrencies. Bitcoin remains the top performer in this environment as negotiations between the US and EU continue.
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