Bitcoin’s price found renewed strength early Monday after former President Donald Trump announced a delay in imposing steep tariffs on the European Union, offering markets a temporary sigh of relief—and crypto traders a bullish signal.
BTC surged past $109,400, edging close to the psychologically significant $110,000 mark, following Trump’s surprise update that the previously threatened 50% tariff on EU goods, scheduled for June 1, would now be postponed to July 9. The move, shared Sunday evening on Trump’s Truth Social account, appears to have eased short-term macroeconomic anxieties, sparking a wave of optimism in the digital asset space.
“I received a call today from Ursula von der Leyen… I agreed [to delay tariffs],” Trump posted, referencing the European Commission President’s outreach to negotiate more time for talks.
Von der Leyen responded promptly, echoing Trump’s sentiment on X (formerly Twitter), saying, “Europe is ready to advance talks swiftly and decisively.”
Relief Rally Sends Bitcoin Soaring—But Resistance Remains
The crypto market responded swiftly. Bitcoin climbed nearly 1.5%, reclaiming ground it had lost after Friday’s market jitters, when Trump’s initial tariff threats caused widespread unease. While BTC hasn’t yet broken through the $110K ceiling, derivatives traders seem increasingly confident it will—and soon.
Coingecko data confirms the upward price swing, while derivatives indicators reveal a corresponding rise in bullish bets. Open interest had previously stagnated due to tariff uncertainty, but Sunday night’s update reignited activity.
According to Coinglass, BTC’s funding rate surged to 0.00076%, reflecting growing demand among leveraged long traders. Just 24 hours earlier, the rate was hovering around 0.0025%. This steep jump implies traders are willing to pay more to maintain bullish positions—typically a sign of building upward momentum.
Six Weeks to Negotiate: Markets Interpret Trump’s Move as “Risk-On”
Trump’s tariff delay essentially opens a six-week diplomatic window for Washington and Brussels to resolve their trade differences. For investors, that means a temporary reduction in geopolitical friction—enough to trigger what some analysts describe as a “risk-on” environment.
Michael Saylor, co-founder and Executive Chairman of MicroStrategy and a long-time Bitcoin bull, subtly fueled the optimism. In a cryptic post on X, he wrote, “I only buy bitcoin with money I can’t afford to lose.” Given his history of major BTC purchases preceding price surges, many took this as a hint of fresh institutional inflows on the horizon.
MicroStrategy currently holds over 500,000 BTC, making it the largest publicly traded holder of the asset. Any new acquisition could further validate bullish sentiment among retail and institutional players alike.
A Word of Caution: Analyst Sees a Potential Pullback Ahead
While enthusiasm is high, some market watchers are urging caution. A well-followed trader who goes by “@CarpeNoctom” pointed out that Bitcoin has just closed its seventh consecutive green weekly candle—a rare feat in its trading history.
He warned that while an eight-week streak of gains has only occurred a few times since 2014, a ninth has never happened. “After eight up weeks, the next one is usually red,” the analyst noted, adding that while short-term pullbacks are common after such rallies, the 6-month and 1-year outlooks remain historically bullish.
Outlook: $120,000 in Sight, But Volatility Lurks
With bullish technicals aligning—positive funding rates, a potential institutional buy signal, and easing geopolitical tension—Bitcoin could be gearing up to test the $120,000 range. But traders should stay nimble. The macro backdrop remains fluid, and historical patterns suggest a short-term cooldown is still possible.
Whether this week turns out to be Bitcoin’s eighth straight green close or a needed breather, one thing is clear: the market is watching every move from both political leaders and institutional whales. And for now, all eyes are on July 9.
