Trump's Extension of EU Tariff Deadline Triggers Bitcoin Price Surge to $109,000
** Bitcoin Rebounds After Trump Extends EU Tariff Deadline **
On May 26, Bitcoin surged above $109,000 following President Trump's decision to postpone tariffs on European Union goods. The cryptocurrency had previously dropped after Trump threatened 50% tariffs if negotiations failed by June 1.
Trump initially set the deadline for June 1, 2025, but extended it to July 9, 2025, after a call with the EU Commission President. This planning breathed optimism into financial markets, leading to a spike in Bitcoin's price.
The tariff uncertainty had previously generated volatility in the global markets. Initially, Trump announced 20% tariffs on EU imports in April, which he later reduced to 10%. On May 23, he intensified the threat to 50% tariffs, causing Bitcoin to plummet by nearly 2%.
Following the announcement of the tariff delay, US equity futures gained across major indices. S&P 500 futures, Dow futures, and Nasdaq-100 futures rose by 0.9%, 0.8%, and 1% respectively. Gold prices dropped 0.3%, indicating a shift towards riskier assets.
The increased activity in Bitcoin derivatives markets further underlined the positive outlook. Open interest in Bitcoin derivatives surged by 2.59%, reaching $76.66 billion over 24 hours. Trading volume also rose by 10.85%, reaching $89.91 billion.
Analysts have maintained a bullish outlook for Bitcoin's price, with several predicting a push towards $120,000 and beyond in June. One analyst, Ryan McMillin from Merkle Tree Capital, regards Bitcoin's correlation with gold and expects both assets to benefit from global monetary expansion.
EU officials are consulting on additional measures targeting $95 billion worth of American goods. The July 9 deadline provides both sides with time to negotiate and avoid the imposition of the tariffs.
Other major cryptocurrencies remained relatively stable during the period. Ethereum, Solana, and Avalanche posted modest gains of 1-2%. Bitcoin has gained 15% over the past 30 days despite recent volatility.
The current rally appears more structurally sound than previous cycles, according to QCP Capital. They attribute this to improved US regulatory environment and persistent institutional inflows.
While the Enrichment Data suggests potentially higher Bitcoin targets, these remain speculative. A broader community poll indicates expectations that Bitcoin may surpass its January 2025 peak soon, potentially moving towards $118,000 in the near term before further gains. However, it's crucial to consider that such predictions rely on various factors, including technical patterns, macroeconomic factors, and institutional buying momentum, any of which could change rapidly.
- Gold prices might drop further as investors shift towards riskier assets like Bitcoin due to optimism following Trump's decision to delay EU tariffs.
- As Bitcoin surged above $109,000, other major cryptocurrencies such as Ethereum, Solana, and Avalanche also posted modest gains, indicating a positive sentiment in the cryptocurrency market.
- The recent volatility in the global markets, including Bitcoin, can be attributed to Trump's initial tariff threats and subsequent changes in the tariff deadline, highlighting the impact of politics on finance and technology.
- Some analysts, such as Ryan McMillin from Merkle Tree Capital, predict a push for Bitcoin's price to reach $120,000 and beyond in June, as they believe Bitcoin's price may correlate with the gold price due to global monetary expansion.
