Bitcoin traded above $119,000 on Monday, rebounding slightly from two-week lows as investor optimism grew following a new trade agreement between the US and the EU, which boosted risk appetite across markets.
Bitcoin was priced at $119,552.6 early Monday, up around 1.1% as of 2:18 a.m. ET (06:18 GMT).
At the time of writing, Bitcoin rose 0.6% to $118,800 on CoinMarketCap at 14:04 GMT.
Meanwhile, other cryptocurrencies posted stronger gains, with Ether hitting its highest level in seven weeks.
Markets Await Fed Meeting and US Crypto Policy Report on July 30
Markets found some relief in the trade framework agreement announced Sunday between Washington and Brussels. The deal imposed only a 15% tariff on European imports — down from the 30% previously threatened — alongside EU commitments to purchase $750 billion in US energy and invest heavily in infrastructure and defense.
This agreement reduced political and trade-related risks, prompting investors to rotate away from safe-haven assets like gold in favor of high-risk assets such as stocks and cryptocurrencies.
Attention now turns to the US Federal Reserve’s policy meeting, which concludes Wednesday. The central bank is expected to keep its benchmark interest rate in the range of 4.25% to 4.50%.
Traders will closely analyze the accompanying statement and remarks for signs of potential rate cuts later this year. A dovish tone from the Fed could further support Bitcoin by reducing the appeal of low-yielding safe assets.
Investors are also awaiting the US crypto policy report, due July 30, which is expected to outline plans for creating a strategic Bitcoin reserve and provide greater regulatory clarity, especially regarding stablecoins.
Such regulatory clarity is seen as a key factor in boosting institutional confidence in the crypto market.
Bitcoin Remains Range-Bound Despite Trade Optimism
Despite recent gains, Bitcoin has remained range-bound between $116,000 and $120,000 over the past two weeks, reflecting investor caution as markets await clearer policy signals. While trade optimism supports risk-taking, broader economic challenges and Fed guidance are capping sharp price gains.
A BBC report described the US–EU agreement as a “major concession” from Brussels. The 15% tariff remains well above pre-April levels (what Trump calls “Liberation Day”) and less favorable than the 10% rate granted to the UK.
The report added that Trump played a decisive role in securing the deal, just as he did with recent agreements with Japan and the UK. Talks are also underway between the US and China in Stockholm, with expectations of extending the current tariff truce before the August 1 deadline.
Institutional Demand for Bitcoin Remains Strong
Despite sideways price action, institutional interest remains solid. According to data from SoSoValue, US Bitcoin ETFs recorded $72.06 million in inflows last week — marking the seventh consecutive week of net inflows since mid-June.
However, the report noted that the figure is significantly lower than the large inflows seen in prior weeks, and a meaningful rise in Bitcoin prices would likely require a major uptick in institutional flows.
