Ahead of the weekly opening, Bitcoin briefly touched $120,000 on leading crypto exchanges earlier today as market optimism soared. The push was likely followed by the U.S. President Donald Trump’s breakthrough tariff deal with the European Union. Ethereum also gained sharply, climbing 3.7% to $3,932, just shy of $4,000.
The rollback of tariffs is a sign of reduced economic uncertainty, which immediately lifted global risk sentiment. Over $35 billion in Bitcoin changed hands in the past 24 hours, indicating increased investor interest.
As per a report by CNN, the tariff agreement was reached after Trump’s meeting with EU Commission President Ursula von der Leyen in Scotland. Both sides agreed on a framework that includes $750 billion in U.S. energy exports and $600 billion in EU investments.
Trump announced a cut of previously stated 30% tariffs down to 15%, although the tariffs on steel and aluminum imports still sit at 50%. The markets reacted immediately, with traders jumping back into riskier assets like Bitcoin and Ethereum.
Altcoins and ETFs Strengthen Market Confidence
In addition to Bitcoin and Ethereum, altcoins also saw notable gains. Over the course of a day, Optimism’s OP rose nearly 16% to $0.8312, while PancakeSwap’s CAKE gained 16.30% to $3.26–as per CoinMarketCap data.
Further momentum was added by Wall Street’s increasing attention on Bitcoin ETFs. Traditional investors can now get exposure to Bitcoin through these ETFs without having to deal with bitcoin exchanges.
Meanwhile, one of the factors which could influence the crypto market is the U.S. government considering the establishment of a “Strategic Bitcoin Reserve,” which would essentially treat Bitcoin as a form of digital Gold. This move would solidify Bitcoin’s reputation as a reliable long-term store of value.
Consequently, the market is bracing for consistent demand as governments and institutions ramp up their Bitcoin holdings.
Also Read: Bitcoin Jumps to $119,700 as U.S.-China Tariff Talks Resume
