Bitcoin saw a modest uptick during Wednesday’s Asian trading session, supported by improved risk appetite in the markets following the announcement of a trade agreement between the United States and Japan. Despite the positive move, the cryptocurrency remains in a consolidation phase after hitting record highs earlier this month.
The digital asset rose by 0.5% to reach $118,582, although it continued to trade within a narrow range after peaking above $123,000 last week. The pace of gains has slowed as investors assess the latest regulatory and economic developments.
The improvement in sentiment was fueled by U.S. President Donald Trump’s announcement of a broad trade deal with Japan, which bolstered the performance of risk-sensitive assets globally. Trump confirmed that Washington and Tokyo agreed to a 15% tariff on all Japanese imports down from the previously proposed 25%.
The deal also included a substantial Japanese investment of $550 billion in the U.S. economy and the opening of Japanese markets to American exports, including automobiles, agricultural products, and energy, boosting optimism around global trade and demand.
Risk assets rallied sharply in global markets, while gold prices declined signaling an increased investor appetite for risk. Nevertheless, Bitcoin’s trading remained confined to a tight range as market participants awaited further progress in trade negotiations ahead of Trump’s August 1 tariff deadline.
Digital currencies received an additional boost last week after the U.S. government passed a set of major crypto regulatory frameworks. President Trump signed the “GENIUS” Act, which establishes a federal framework for stablecoins. In addition, the U.S. House of Representatives approved two more bills, which are now awaiting Senate review.
Market attention is now turning toward the upcoming Federal Reserve meeting on July 30, with investors watching closely for signals on the future path of interest rates.
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