Cryptocurrency markets surge and Bitcoin targets $110K, encouraged by Trump's decision to postpone tariffs on EU goods.
In the past 12 hours, cryptocurrency markets have experienced a significant surge, with a gain of almost $100 billion. This upward trend follows an easing of trade tensions after U.S. President Donald Trump announced an extension of the deadline for a 50% tariff on the European Union until July 9. Initially, Trump stated the tariffs would be imposed on June 1.
In a statement posted on his social media platform, Truth Social, Trump revealed that he had received a request for an extension from Ursula von der Leyen, President of the European Commission. He agreed to the delay, stating it was a privilege to do so.
Earlier, von der Leyen had stated that Europe was prepared to swiftly and decisively advance talks, which would require the duration afforded until July 9 to achieve a favorable deal. The President's constant flip-flops on tariff policies and dates have instigated significant market volatility and uncertainty, leaving nations and investors in a state of limbo.
The volatile market conditions stem from Trump's unpredictable trade strategies, which have so far only yielded a deal with the United Kingdom. The European Union, according to data, is the United States' largest trading partner, purchasing 21% of its exports, primarily pharmaceuticals and other goods such as vehicles, aircraft, petroleum oils, and alcoholic beverages.
Following a 4% drop late last week due to escalating tariff tensions, cryptocurrency markets have rebounded, with a current total capitalization of $3.56 trillion— a 2.5% increase since Trump's latest tariff u-turn. However, more volatility may be in store this week as GDP and inflation data is due in the United States.
Bitcoin, currently leading sentiment in the crypto market, rose 1.5% on the day and was trading at $109,650 at the time of writing, recovering from a weekend low of $106,800, according to Coingecko.
[Enrichment Data Relevance]: These fluctuations in the cryptocurrency market mirror the volatility observed in both equity and fixed income markets in response to Trump's shifting trade policies and geopolitical risks. Concerns about escalating trade conflicts with the EU and other regions like China have contributed to this increased volatility.
[1] Source: Financial Times (https://www.ft.com/content/ebe47882-211e-488b-9ecc-96e7e45157ab)[2] Source: Reuters (https://www.reuters.com/business/us-china-trade)
- The crypto market's recovery, following a 4% drop last week, is linked to the easing of trade tensions, particularly the extension of the deadline for a 50% tariff on the European Union.
- In the past 12 hours, cryptocurrency markets have witnessed a substantial surge, adding almost $100 billion in value, boosted by the trade tension easement.
- Bitcoin, a leading indicator in the crypto market, has experienced a 1.5% rise and is currently trading at $109,650, as investors respond to the extended tariff deadline.
- The recent volatility in the crypto market, as well as equity and fixed income markets, can be attributed to political risks and uncertainties, such as escalating trade conflicts with the EU and other regions like China.
