Palladium prices declined during Tuesday's trading amid a rise in the US dollar against most major currencies, but palladium is nearing a key threshold due to concerns about supply disruptions.

US President Donald Trump yesterday set a new deadline ranging from 10 to 12 days for Russia to reach a peace agreement with Ukraine to end the ongoing war between the two neighbors since early 2022.

This comes as a reduction from Trump's previously granted deadline to Russia, which had spanned 50 days — ending in early September — to end the war with Ukraine, or else face 100% tariffs on countries importing goods from Russia.

On Sunday, a trade agreement was announced between the United States and the European Union stipulating the imposition of a 15% tariff on most European goods, instead of 30%. US President Donald Trump also indicated that the deal includes a commitment from the European Union to purchase $750 billion worth of American energy products over the coming years.

Meanwhile, senior officials from the United States and China are scheduled to meet in Stockholm today, Monday, in an attempt to extend the trade truce before the August 12 deadline.

The Federal Reserve is also holding its meeting, which begins today and continues through Wednesday, amid expectations of keeping the interest rate in the range of 4.25% to 4.5%.

Traders will focus on the wording of the statement and accompanying remarks in search of potential signals for later interest rate cuts this year. A dovish tone from the Fed could further support Bitcoin by reducing returns on low-interest safe assets.

On the other hand, the dollar index rose by 0.4% to 99.01 points at 16:24 GMT, recording a high of 99.1 points and a low of 98.5 points.

As for trading, palladium futures for September delivery fell by 1.3% to $1275 per ounce at 16:24 GMT.

Bitcoin remained relatively stable over the past 24 hours, continuing to trade above the $118,000 mark despite reports of a major sell-off by Galaxy Digital.

Bitcoin Calms Near $119,000

The cryptocurrency dropped sharply on Thursday and Friday following a massive sale of 80,000 BTC led by Galaxy Digital on behalf of a third party, pushing Bitcoin to a two-week low of $114,500.

After the sell-off was completed, Bitcoin quickly regained momentum, surging back to its usual range near $117,000 over the weekend. Gains extended into Monday morning, with prices approaching $120,000 before encountering resistance and retreating to $117,500, later stabilizing near $119,000 — resulting in a near 0% daily change.

Analysts expect further volatility over the next two days as markets await the Federal Reserve's decision on whether to cut interest rates or maintain current levels.

With Bitcoin steadily approaching the $120,000 threshold, optimism is rising in the crypto market, particularly as institutional investment and large-scale treasury purchases grow.

Bitcoin Momentum Reignites Interest in Altcoins

Bitcoin is currently trading at $118,888.16, up 0.69% on the day, with its market capitalization surpassing $2.36 trillion. Daily trading volume surged by 33.22% to over $61.39 billion.

This activity has sparked renewed interest in identifying the best cryptocurrencies to invest in, especially among digital treasuries seeking alternatives to Bitcoin and Ethereum. There's a growing focus on projects offering low gas fees, decentralized finance (DeFi) platforms, and multi-chain utility applications.

Emerging tokens like Remittix (RTX) are gaining attention as promising options due to their real-world solutions in global finance.

Meanwhile, Bitcoin’s dominance over the altcoin market remains above 59%, with its market cap stable at $2.365 trillion, according to CoinGecko data.

How High Can Bitcoin Go? Citi Forecasts Point to $200K

Citi Group analysts Alex Sanders and Nathaniel Robert issued diverging forecasts for Bitcoin’s future, setting a base target of $135,133, with an optimistic scenario reaching $199,340 by year-end.

They noted that this outlook marks a fundamental shift in how traditional financial institutions view the crypto market — no longer as a speculative asset but as an integral part of the global financial infrastructure.

“Crypto assets now represent a significant share of capital,” they added, “and the total crypto market cap is on par with the world’s largest publicly traded companies.”

Citi’s forecast aligns with other bullish reports, including a Bridge Capital analysis by Anthony Scaramucci predicting $200,000, and VanEck’s forecast of $180,000.

ETF Inflows Driving Bitcoin’s Price Surge

One key point in Citi’s analysis is that inflows into exchange-traded funds (ETFs) have become the main driver behind Bitcoin’s recent price rise. Data shows that 41% of Bitcoin’s price volatility can be explained solely by ETF activity since their launch.

Citi noted that the market has seen $19 billion in inflows so far this year, including $5.5 billion in recent weeks. They estimate that each $1 billion in weekly ETF inflows corresponds to a 3.6% price increase for Bitcoin, underscoring a direct mathematical link between institutional demand and price growth.

Oil prices rose on Tuesday, driven by optimism over easing trade tensions between the United States and its key trading partners, while US President Donald Trump increased pressure on Russia over its war in Ukraine.

Brent crude futures climbed by 47 cents, or 0.7%, to $70.51 a barrel by 09:24 GMT, after hitting their highest level since July 18. US West Texas Intermediate (WTI) crude futures rose by 53 cents, or 0.8%, to $67.24 a barrel.

Both benchmarks had ended the previous session more than 2% higher.

The latest increase followed the announcement of a trade agreement between the US and the European Union, which imposed 15% tariffs on most European goods but avoided a full-blown trade war between the two major allies. Such a conflict would have impacted nearly a third of global trade and weakened fuel demand prospects.

The deal also includes a pledge by the EU to purchase $750 billion worth of American energy over the next three years — a figure analysts say the EU has virtually no chance of meeting. It also stipulates that European companies will invest $600 billion in the US during Trump’s second term.

Meanwhile, top economic officials from the US and China continued their second day of talks in Stockholm, seeking to resolve long-standing trade disputes and step back from the brink of an escalating trade war between the world’s two largest economies.

Separately, Trump announced on Monday a new "10 or 12-day" deadline for Russia to make progress toward ending the war in Ukraine, threatening sanctions on Russia and its export buyers if no tangible progress is made.

ING Group said in a note: “Oil prices rose after President Trump’s remarks on shortening the deadline for Russia to reach an agreement with Ukraine to end the war, which sparked concerns about supply.”

At the same time, market participants are awaiting the results of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting, scheduled for July 29–30.

The Fed is widely expected to keep interest rates unchanged, but may signal a dovish shift in light of signs of slowing inflation, according to Priyanka Sachdeva, senior analyst at brokerage firm Phillip Nova.

The euro struggled on Tuesday to recover from its sharp losses, as investors began to realize that the terms of the trade agreement between the United States and the European Union largely favored Washington and offered little improvement to the EU's economic outlook. Meanwhile, the US dollar maintained its gains.

France on Monday described the framework trade deal as a "dark day for Europe," saying the bloc had yielded to President Donald Trump under an unbalanced agreement that imposed 15% tariffs on European goods.

German Chancellor Friedrich Merz said the German economy would suffer "significant" damage as a result of the agreed tariffs.

The euro had dropped by 1.3% in the previous session, marking its largest daily decline in over two months, amid concerns over growth and a decline in eurozone government bond yields.

The euro failed to regain those losses and was recently trading slightly lower by 0.02% at $1.1584.

Ray Attrill, Head of FX Strategy at National Australia Bank, said: "It didn’t take long for markets to conclude that while the news appears relatively positive, it’s ultimately negative when it comes to its near-term impact on eurozone growth."

He added: "The deal was strongly condemned by France, while others — including Chancellor Merz — spoke of the negative consequences for exporters and, by extension, economic growth."

The euro’s decline supported the dollar, which jumped 1% against a basket of currencies overnight.

The dollar held steady on Tuesday, pushing the British pound to a two-month low of $1.3338, while the Japanese yen rose 0.2% to 148.22 yen per dollar. The dollar index held flat at 98.66.

Thierry Wizman, global currency and interest rate strategist at Macquarie Group, said:

"While the strength of the US dollar may reflect the perception that the new trade agreement between the US and the EU leans in Washington’s favor, it may also reflect a sense that the US is reengaging with the EU and its key allies."

However, Trump said Monday that most trade partners who are not negotiating separate deals will soon face tariffs ranging from 15% to 20% on their exports to the US — significantly higher than the 10% blanket tariff he imposed in April.

In other currency markets, the Australian dollar rose 0.04% to $0.6524, while the New Zealand dollar was little changed at $0.5970.

The Chinese yuan in the domestic market hit a one-week low at 7.1794 per dollar, as investors awaited the outcome of trade talks between Washington and Beijing.

Top economic officials from the US and China met in Stockholm on Monday for more than five hours of talks aimed at resolving longstanding economic disputes behind the ongoing trade war between the world’s two largest economies, in an attempt to extend the current three-month truce.

Alongside the trade negotiations, investors this week are also awaiting interest rate decisions from both the US Federal Reserve and the Bank of Japan.

Both central banks are expected to keep interest rates unchanged, but traders will closely monitor their post-meeting statements for clues on the timing of any future monetary policy moves.