Bitcoin climbed above $119,000 on Monday, supported by a mild rebound following two weeks of declines, amid improved investor risk appetite after the announcement of a trade agreement between the United States and the European Union. The deal, which includes a 15% tariff on European imports down from a threatened 30% helped reduce political and trade uncertainty, encouraging investors to move away from safe-haven assets and toward higher risk investments like stocks and cryptocurrencies.
Despite the rise, Bitcoin’s movements remained confined within a narrow trading range, as markets await the outcome of the Federal Reserve’s two day policy meeting concluding Wednesday. The central bank is widely expected to maintain interest rates at 4.25%–4.50%. Investors are also closely watching the Fed’s tone for any signs of potential rate cuts later this year, which could offer further support to Bitcoin by lowering returns on safer, low-yielding assets.
Meanwhile, the U.S. government is set to release a significant report on digital asset policy on July 30, expected to outline plans for establishing a strategic Bitcoin reserve and introduce regulatory frameworks for sectors like stablecoins. These steps are seen as a catalyst for boosting institutional confidence in the digital asset space.
Alongside Bitcoin, most altcoins posted stronger gains. Ether, the world’s second largest cryptocurrency, surged more than 4% to $3,924.15 its highest level since mid-December 2024 driven by optimism around progress in U.S. trade relations. Despite these gains, markets remain cautious, awaiting further clarity on monetary and regulatory policy directions.
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