Bitcoin staged a late Sunday recovery, climbing back to $109,600, as investors responded positively to President Donald Trump’s decision to postpone a proposed 50% tariff on European Union goods. The move offers a temporary reprieve from escalating global trade tensions, which have been a source of volatility for both traditional and digital assets.
The tariff delay followed a call between President Trump and European Commission President Ursula von der Leyen, during which the EU requested additional time to finalize a trade agreement. The new deadline for potential tariffs is now July 9.
President Trump had initially threatened a 50% tariff by June 1 if negotiations stalled, a significant escalation from his earlier proposals of 20% and then 10%. The walk-back late Sunday has placed markets in a holding pattern, with trade policy remaining a key factor influencing investor sentiment.
Bitcoin’s recent surge, which saw it touch a new all-time high of $111,000 earlier this week, was briefly interrupted by the tariff threat. “Tariff talk could see a few bumps along the way, and we are hoping to see some more trade deals announced soon,” noted Ryan McMillin, chief investment officer at crypto fund manager Merkle Tree Capital, in a Dcrypt report.
Despite the recent volatility, analysts remain largely bullish on Bitcoin. “Bitcoin has been trading more in line with gold lately, reflecting its appeal as a non-sovereign asset and inflation hedge,” McMillin told Decrypt. He anticipates Bitcoin could push towards $120,000 and beyond, a sentiment echoed by Pav Hundal, lead market analyst at crypto exchange Swyftx, who pointed to significant notional volume at the $120,000 level on the end-of-June contract.
Crypto markets were broadly stable on Sunday, with Ethereum hovering near $2,550 and Solana and Avalanche posting modest gains. Traders are now balancing geopolitical risks with continued institutional inflows and upcoming macroeconomic data, including the U.S. core PCE inflation print due Friday.
