BTC Hits $120K, ETH Eyes $4K Amid Risk-On Rally Sparked by U.S.–EU Trade Breakthrough

Bitcoin Nears $120K as Tariff Breakthrough Lifts Global Markets

Bitcoin climbed toward the $120,000 threshold on Monday as a wave of optimism swept across financial markets following a breakthrough trade deal between the U.S. and the European Union. President Donald Trump’s announcement of a reduced tariff schedule — scaling back proposed levies from 30% to 15% — was seen by investors as a de-escalation in global trade tensions, boosting appetite for risk assets.

BTC last traded at $118,455, its highest level in nearly two weeks, and just under 5% from its all-time high. Equity futures also responded positively, with the S&P 500 rising 0.3% and Dow futures advancing by 180 points.

“Bitcoin bounced off its support range and reclaimed $119K despite fears of a correction sparked by movements from older BTC wallets,” noted Nassar Al Achkar, Chief Strategy Officer at CoinW. “Institutional accumulation and reserve strategies remain strong, especially as equities continue to post gains.”

Ethereum Breaks Higher; XRP, DOGE, BNB Follow

Ether (ETH) rose 3.7% to $3,932, extending its recent rally and approaching the psychologically important $4,000 level. ETH’s strength has been fueled by growing institutional interest, including moves by companies like SharpLink to add ETH to their treasuries.

Traders are also watching for a potential rotation into ETH — a common pattern seen in previous cycles after Bitcoin leads the charge.

XRP gained 2% to $3.30 as market participants positioned around potential regulatory and ETF developments. Binance Coin (BNB) led the large-cap altcoin pack with a 6.3% surge, while Dogecoin (DOGE) advanced 2% to $0.24. Solana (SOL) and Cardano (ADA) saw incremental gains, both trading firmly above key resistance levels.

Crypto Industry Momentum Turns Structural

The month of July has been marked by a significant shift in institutional crypto adoption, with more public companies raising capital to establish on-chain treasuries. The $4 trillion total crypto market cap milestone and the recent passage of the GENIUS Act are being seen as transformative developments.

“This isn’t just another bull market — it’s a structural change in how capital markets view digital assets,” said Jeff Mei, COO at BTSE. “Traditional financial institutions are moving aggressively to roll out crypto-related services in response to surging client demand.”

Macro Watch: Fed, Inflation, and Trump’s August Deadline

With the Federal Reserve’s upcoming meeting, fresh inflation data, and Trump’s August 1 tariff enforcement deadline on the horizon, traders are preparing for heightened volatility.

Analysts suggest that an earlier-than-anticipated Fed rate cut could provide another lift to both equities and crypto, especially in a risk-on environment.

For now, momentum remains on the side of the bulls — but short-term swings are likely as the market navigates critical macro and regulatory catalysts.