Crypto Markets Rally: BTC Touches $120K, ETH Nears $4K After U.S.–EU Tariff Agreement

Bitcoin Eyes $120K as Trump’s EU Tariff Rollback Sparks Risk-On Rally

Bitcoin surged toward $120,000 to start the week as traders welcomed a significant reduction in trade tensions between the U.S. and European Union. The move came after President Donald Trump confirmed a new tariff agreement, cutting proposed duties from 30% to 15% — a shift seen as easing macroeconomic uncertainty across global markets.

BTC briefly touched $118,455, its highest level in nearly two weeks, and now sits less than 5% below its all-time high. The announcement also lifted equity sentiment, with S&P 500 futures rising 0.3% and Dow futures gaining over 180 points.

“Despite renewed wallet activity suggesting possible distribution, Bitcoin held firm within a tight range and rebounded strongly, signaling bullish underlying demand,” said Nassar Al Achkar, Chief Strategy Officer at CoinW. “Institutions continue allocating to crypto, signaling structural confidence even as equity markets push higher.”

Ethereum Nears $4,000, Altcoins Follow Suit

Ethereum (ETH) posted a 3.7% daily gain to trade at $3,932 — its highest level since December — as capital rotation into large-cap altcoins intensified. The momentum comes amid growing interest from public companies like SharpLink, which recently began building ETH-denominated treasury reserves.

Market watchers also point to a familiar cycle: Ethereum historically outperforms Bitcoin in the weeks following a BTC-led rally, and some traders believe that trend is now playing out again.

XRP rose 2% to $3.30 on the back of ETF speculation, while Binance Coin (BNB) led majors with a 6.3% daily gain. Dogecoin (DOGE) advanced to $0.24, extending its weekly move to nearly 9%. Solana (SOL) held above $190, and Cardano (ADA) traded around $0.85.

Institutional Shift: July Marks Inflection Point for Crypto Treasuries

Analysts increasingly view July’s market behavior as more than a speculative run — calling it a structural pivot in crypto adoption. With the GENIUS Act now in place and the total crypto market cap surpassing $4 trillion, institutional engagement has picked up dramatically.

“We’re seeing a strategic shift,” said Jeff Mei, COO of BTSE. “Companies are raising capital on public markets to fund crypto treasury initiatives. Banks and financial institutions are aggressively expanding digital asset services to keep pace with demand.”

Macro Catalysts Ahead: All Eyes on Fed, Inflation, and Tariffs

Traders are now turning attention to upcoming macro events. The next Federal Reserve meeting could bring forward the timeline for interest rate cuts, while fresh inflation data and Trump’s August 1 tariff deadline could inject further volatility into both equities and digital assets.

“While the risk-on mood is strong, markets are far from stable,” Mei warned. “These next two weeks could prove pivotal.”