On Monday, Bitcoin surpassed the $109,600 mark, reflecting a 1.4% increase. The cryptocurrency’s rise came in response to US President Donald Trump’s unexpected decision to delay the imposition of substantial tariffs on European Union (EU) goods, alleviating concerns in the market and bolstering risk assets.
This upward movement followed Trump’s announcement on Sunday evening, which postponed the potential introduction of 50% tariffs on EU imports until July 9.
Just two days prior, the president had warned of implementing the tariffs by June 1 if trade negotiations with the EU failed to progress satisfactorily.
Possible Easing of US-EU Trade Tensions Following Tariff Delay
The tariff delay followed a constructive conversation with European Commission President Ursula von der Leyen, who requested more time to negotiate a beneficial agreement. This reduction in immediate trade conflict fears has eased pressures on global markets.
Previously, Trump had declared an initial 20% tariff on EU goods but later modified it to 10%, allowing for a grace period until early July. This fluctuating timeline has showcased the administration’s unpredictable trade strategies, which continue to unsettle international markets.
Nevertheless, investors were optimistic about this latest extension, interpreting it as an indication of potential progress and improved communication between Washington and Brussels.
The market sentiment had started to recover after a tumultuous period in April, which saw fears of economic slowdown and aggressive trade policies trigger widespread asset sell-offs. Analysts suggest that the pause in tariff increases has rekindled risk appetite, prompting traders to invest more in Bitcoin and other cryptocurrencies.
Bitcoin Reaches New Highs Amid ETF Growth and Positive Risk Sentiment
Bitcoin’s recent ascent is also linked to broader structural demand dynamics. Last week, the cryptocurrency briefly reached a record high of $111,814, driven by consistent inflows from exchange-traded funds (ETFs) and corporate investors.
According to data supplied by SoSoValue, spot Bitcoin ETFs experienced net inflows of $2.75 billion between May 19 and May 23, while Ethereum ETFs saw $248 million in inflows, with no outflows reported during that timeframe.
Over the last 18 months, Bitcoin has outperformed the S&P 500 by over 100 percentage points, further establishing itself as a high-beta asset that attracts capital in risk-on environments. Institutional investors have increasingly mirrored the actions of figures like MicroStrategy’s Michael Saylor, who has played a significant role in promoting large-scale Bitcoin accumulation.
Monday’s surge serves as a clear reminder of Bitcoin’s sensitivity to macroeconomic factors, particularly changes in US trade policy. While the latest easing provided immediate respite, market participants remain vigilant, acutely aware of how quickly sentiment can shift with future political developments.
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