Bitcoin saw renewed momentum late Sunday, regaining ground above $109,600, after former U.S. President Donald Trump opted to postpone a steep tariff hike on European Union goods. The decision, which temporarily cools escalating trade tensions, has sparked fresh optimism among risk-on investors and sent both traditional and crypto markets higher to start the week.
The tariff announcement—or lack thereof—came following a conversation between Trump and European Commission President Ursula von der Leyen, in which the EU requested additional time to iron out a long-term trade resolution. As a result, the proposed 50% levy on EU imports has now been delayed until July 9, giving markets a temporary breather from the threat of an all-out trade war.
U.S. equity futures were quick to reflect the sentiment shift. The S&P 500 ticked up 0.9%, the Dow rose 0.8%, and the tech-heavy Nasdaq-100 gained a full percent in pre-market action. Crypto markets, particularly Bitcoin, responded just as swiftly.
The delay comes after a turbulent few days in which Trump’s surprise tariff threat—made via Truth Social on Friday—rattled global markets. Bitcoin, which had just set a new all-time high above $111,000 earlier in the week, quickly dipped to $108,500 following the announcement. The rollback of that aggressive policy stance has since allowed BTC to recover much of its footing.
While the short-term volatility may have unnerved some traders, others remain focused on the bigger picture—and the possibility of Bitcoin pushing toward the widely anticipated $120,000 level in June. Analysts say the combination of easing geopolitical stress, rising institutional participation, and inflation-hedging behavior continues to fuel the rally.
“Bitcoin is behaving more like digital gold than ever before,” said Ryan McMillin, Chief Investment Officer at Merkle Tree Capital. “As M2 money supply expands globally and inflationary concerns linger, we’re seeing a significant rise in non-sovereign asset demand. Gold has already broken to new highs, and Bitcoin is clearly following suit. We believe BTC is still on track to test $120,000 within the coming months.”
That bullish sentiment is echoed by market analysts like Pav Hundal from Swyftx, who highlighted the unusually high options activity targeting the $120,000 mark on Deribit, with more than $500 million in notional value sitting at that strike price for late June contracts.
Meanwhile, the EU—which exported over $600 billion worth of goods to the U.S. last year—has paused its retaliatory measures, for now. It had previously considered tariffs on $23 billion worth of U.S. goods and is currently reviewing broader measures that could target an additional $95 billion.
Elsewhere in crypto, major altcoins posted modest gains. Ethereum held steady near $2,550, while Solana and Avalanche rose between 1% and 2%. The rebound signals cautious confidence returning to markets, but uncertainty remains as traders look ahead to macroeconomic data later this week, particularly Friday’s U.S. core PCE inflation report.
Despite near-term volatility, the tone among analysts remains optimistic. QCP Capital, in a note shared Friday, wrote, “The regulatory climate in the U.S. has started to turn more constructive, especially for institutional investors. Combined with strong ETF inflows and solid spot demand, the structure supporting this rally feels more durable than past bull runs.”
Bitcoin’s climb back above $109,000 may not be a breakout just yet—but it’s a clear sign that markets are still hungry for risk amid improving macro signals and retreating political firestorms.
Whether Bitcoin can close June above the symbolic $120,000 line remains to be seen. But with cooling tariff rhetoric, a friendlier regulatory tone, and major institutions still piling in, the path forward is looking more optimistic than it did just days ago.
