A sweeping new trade agreement between the US and the EU (European Union) could mark a turning point in global risk sentiment, and potentially support Bitcoin (BTC) and other risk assets.
Meanwhile, crypto markets eye another hiatus regarding tariff policies between the US and China.
Trump Announces US-EU Trade Deal: All You Need to Know
The latest US-EU agreement, valued at approximately $1.35 trillion, includes sweeping commitments from the European bloc.
Under the terms of the deal, the EU will purchase $750 billion worth of US energy, invest $600 billion into the US economy, and buy hundreds of billions worth of American-made military equipment.
In exchange, a uniform 15% tariff will be applied across all US-EU traded goods, replacing previously fragmented tariff rates.
Trump emphasized the scale of the deal, revealing that American goods would enter EU markets at zero tariffs. This signals a dramatic reversal from years of trade tension between the two allies.
“This deal with the European Union is the biggest I’ve made so far. But we’re just getting started,” he stated.
Thomas Lee, Head of Research at Fundstrat Global Advisors, called the deal a removal of a key “tail risk” for markets.
“This removes a negative ‘tail risk’ event = good for equities,” Lee posted on X (Twitter).
Traditionally, reduced macro fears tend to benefit equities and weaken the bullish case for Bitcoin as a hedge or risk-off asset.
However, in today’s hybrid market structure, where Bitcoin is increasingly treated as a risk asset by institutions, it can also benefit in the short term when risk appetite returns.
Reducing geopolitical uncertainty and global trade friction often results in a more risk-on environment for crypto markets, particularly Bitcoin.
Bitcoin’s increasing integration into institutional portfolios means that macro catalysts, such as reducing tail risks, can amplify capital flows into the asset.
Moreover, the global tariff reshuffling may influence currency markets, dollar strength, and inflation dynamics, which are macro variables closely watched by crypto traders.
With new tariff rates on countries like Canada (35%), Mexico (30%), and Brazil (50%) set to take effect on August 1, and a temporary 90-day extension on US-China tariffs, global capital flows could see meaningful reallocation in the coming months.
This development could offer a rare moment of clarity for crypto investors facing an uncertain macro backdrop.
It could deliver a calmer trade environment, stronger dollar-aligned capital flows, and a potential tailwind for risk assets like Bitcoin.
“President Trump just unlocked one of the biggest economies in the world. The European Union is going to open its 20 Trillion dollar market,” commented Howard Lutnick, US Secretary of Commerce.
Bitcoin was trading for $119,060 as of this writing, up by a modest 0.78% in the last 24 hours.
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