Bitcoin traded above $119,000 on Monday, rebounding slightly from two-week lows as investor optimism grew following a new trade agreement between the US and the EU, which boosted risk appetite across markets.

Bitcoin was priced at $119,552.6 early Monday, up around 1.1% as of 2:18 a.m. ET (06:18 GMT).

At the time of writing, Bitcoin rose 0.6% to $118,800 on CoinMarketCap at 14:04 GMT.

Meanwhile, other cryptocurrencies posted stronger gains, with Ether hitting its highest level in seven weeks.

Markets Await Fed Meeting and US Crypto Policy Report on July 30

Markets found some relief in the trade framework agreement announced Sunday between Washington and Brussels. The deal imposed only a 15% tariff on European imports — down from the 30% previously threatened — alongside EU commitments to purchase $750 billion in US energy and invest heavily in infrastructure and defense.

This agreement reduced political and trade-related risks, prompting investors to rotate away from safe-haven assets like gold in favor of high-risk assets such as stocks and cryptocurrencies.

Attention now turns to the US Federal Reserve’s policy meeting, which concludes Wednesday. The central bank is expected to keep its benchmark interest rate in the range of 4.25% to 4.50%.

Traders will closely analyze the accompanying statement and remarks for signs of potential rate cuts later this year. A dovish tone from the Fed could further support Bitcoin by reducing the appeal of low-yielding safe assets.

Investors are also awaiting the US crypto policy report, due July 30, which is expected to outline plans for creating a strategic Bitcoin reserve and provide greater regulatory clarity, especially regarding stablecoins.

Such regulatory clarity is seen as a key factor in boosting institutional confidence in the crypto market.

Bitcoin Remains Range-Bound Despite Trade Optimism

Despite recent gains, Bitcoin has remained range-bound between $116,000 and $120,000 over the past two weeks, reflecting investor caution as markets await clearer policy signals. While trade optimism supports risk-taking, broader economic challenges and Fed guidance are capping sharp price gains.

A BBC report described the US–EU agreement as a “major concession” from Brussels. The 15% tariff remains well above pre-April levels (what Trump calls “Liberation Day”) and less favorable than the 10% rate granted to the UK.

The report added that Trump played a decisive role in securing the deal, just as he did with recent agreements with Japan and the UK. Talks are also underway between the US and China in Stockholm, with expectations of extending the current tariff truce before the August 1 deadline.

Institutional Demand for Bitcoin Remains Strong

Despite sideways price action, institutional interest remains solid. According to data from SoSoValue, US Bitcoin ETFs recorded $72.06 million in inflows last week — marking the seventh consecutive week of net inflows since mid-June.

However, the report noted that the figure is significantly lower than the large inflows seen in prior weeks, and a meaningful rise in Bitcoin prices would likely require a major uptick in institutional flows.

Silver prices declined in the European market on Monday, extending losses for the fourth consecutive session and pulling further away from the 14-year high. The drop comes amid continued profit-taking and correction activity, coupled with pressure from the rising US dollar in the foreign exchange market.

Risk sentiment in global markets improved as fears of a US economic slowdown eased, especially after the United States reached new trade agreements with Japan and the European Union, with China possibly next in line.

The Price

• Silver Prices Today: Silver fell by 0.3% to $38.06, down from the opening level of $38.17. It recorded a session high of $38.34.

• On Friday, silver settled with a loss of about 2.3%, marking its third straight daily decline, driven by continued profit-taking from the 14-year high of $39.53 per ounce.

US Dollar

The US Dollar Index rose by 0.7% on Monday, extending its rally for a third session and reaching a near two-week high of 98.32 points. This reflects the continued strength of the US currency against a basket of major and minor peers.

The dollar’s rise comes as concerns over a US economic slowdown ease following recent trade deals struck by the United States with Japan and the European Union.

Additionally, strong economic data suggests that the Federal Reserve may take more time before resuming interest rate cuts.

Positive Trade Developments

The United States signed a framework trade agreement with the European Union on Sunday, imposing a 15% tariff on most European goods — half of what Trump had previously threatened to impose starting August 1.

This positive development helped avert a broader trade war between the two allies, who together account for nearly one-third of global trade.

Meanwhile, top US and Chinese negotiators are scheduled to meet in Stockholm on Monday to discuss extending the trade truce and preventing sharp tariff increases.

Oil prices rose on Monday as investors reacted to a trade agreement between the United States and the European Union that spared most European goods from tariffs that had been set as high as 30%.

Brent crude futures climbed by 76 cents, or 1.1%, to $69.20 a barrel by 10:28 GMT, while US West Texas Intermediate (WTI) crude rose by 74 cents, or 1.1%, to $65.90 a barrel.

Tony Sycamore, market analyst at IG Markets, said: “The trade agreement between the US and the EU, along with the possibility of extending the tariff truce with China, is supporting global financial markets and oil prices.”

The deal, announced on Sunday, imposes a 15% tariff on most European goods instead of 30%. US President Donald Trump also stated that the agreement includes a pledge from the European Union to purchase $750 billion worth of American energy products over the coming years.

Senior officials from the United States and China are scheduled to meet in Stockholm on Monday in an effort to extend the trade truce ahead of the August 12 deadline.

Thomas Varga, analyst at PVM, said the deal between Washington and Brussels has “removed another layer of uncertainty,” adding that “the focus seems to be shifting back to fundamentals.” He noted that a strong dollar and reduced crude oil imports by India were weighing on prices.

On the supply side, the OPEC+ Joint Ministerial Monitoring Committee is expected to stick with its current production increase plans at its meeting today, according to four delegates who spoke to Reuters on July 25.

ING expects the coalition to complete the full restoration of the 2.2 million barrels per day of additional voluntary cuts by the end of September.

Meanwhile, Venezuela’s state oil company PDVSA is preparing to resume operations once Trump reinstates export and operational permits for its partners, according to company sources. Oil swaps that would allow Venezuelan crude to be exported are expected to resume if licenses are granted.

In the Middle East, Yemen’s Houthi group announced on Sunday that it would target vessels belonging to companies dealing with Israeli ports, regardless of the vessels’ nationality, in what they called the fourth phase of their military operations against Israel over the Gaza war.

The US dollar rose against most major currencies on Monday after the United States and the European Union reached a framework trade agreement, the latest in a series of moves aimed at averting a global trade war. Investors are also closely watching central bank meetings this week in the United States and Japan.

During a meeting in Scotland on Sunday, US President Donald Trump and European Commission President Ursula von der Leyen announced that the agreement includes a 15% tariff on European imports—half the 30% rate Trump had threatened to impose starting August 1.

The deal follows last week’s agreement between the US and Japan. Meanwhile, economic talks between senior US and Chinese officials are set to resume in Stockholm on Monday, aiming to extend the trade truce by three months and avoid higher tariffs.

The euro was last trading at $1.1693, down 0.4% on the day, after retreating from an earlier rally during Asian trading. Investors shifted focus to what easing global trade tensions might mean for the dollar’s performance.

Paul Mackel, Global Head of FX Research at HSBC, said, “The tone of US trade talks has become more constructive following deals with Japan and the EU. If more 'trade deals' are struck, that could reduce the uncertainty that has weighed on the dollar. In that scenario, other factors such as yield differentials may gain more influence.”

The dollar had weakened sharply earlier this year, particularly against the euro, amid fears that high tariffs would significantly damage the US economy, prompting investors to reduce their exposure to US assets.

Although yield spreads on government bonds are typically a key driver of currency movements, the euro is currently trading above levels implied by the yield gap between US and eurozone bonds.

The euro also edged lower against the Japanese yen and the British pound, after having hit a one-year high versus the yen and a two-year high versus the pound at the start of trading.

The dollar posted modest gains in other markets, rising 0.15% against the yen to 147.83 yen per dollar, while the pound slipped 0.13% to $1.3428.

As concerns over the economic fallout from tariffs subside, investor attention is turning to corporate earnings and this week’s monetary policy meetings at the Federal Reserve and the Bank of Japan.

While both central banks are expected to keep interest rates unchanged, markets will be watching accompanying statements closely to gauge the timing of future moves.

Investors are also awaiting Trump’s reaction to the Fed’s decision, as the US president continues to push for steep rate cuts. Last week, he came close to attempting to fire Fed Chair Jerome Powell, but pulled back at the last moment, citing concerns it could destabilize financial markets.

In the cryptocurrency market, Ethereum surged 1.7% to $3,940.25, marking its highest level since December 2024.