Bitcoin Rebounds as Trump Extends EU Tariff Deadline, US Futures Tick Higher

Bitcoin Rebounds as Trade Tensions Ease, Signaling Continued Institutional Appetite

Bitcoin climbed back to $109,600 in late Sunday trading as investors reacted positively to President Donald Trump's decision to delay a proposed 50% tariff on European Union goods. The move, which followed a call with European Commission President Ursula von der Leyen, offered markets a reprieve from ongoing global trade tensions.

U.S. equity futures are also edging higher, with S&P 500 futures rising 0.9%, Dow futures adding 0.8%, and Nasdaq-100 futures gaining 1%. This cautious optimism reflects the belief that the delay could ease transatlantic trade pressures, at least for now.

Trump had initially proposed a 20% tariff on most EU imports in April, later reducing it to 10% to allow time for talks. On Friday, he threatened to raise tariffs to 50% by June 1 if negotiations stalled, before walking back the timeline late Sunday. The revised July 9 deadline now places markets in a holding pattern, with trade policy once again a source of volatility across both traditional and digital assets.

Despite the recent volatility, sentiment appears to be holding for those betting on a favorable outcome to U.S. trade policy. Analysts point to Bitcoin's growing alignment with gold as a non-sovereign asset and inflation hedge, with expectations that the cryptocurrency could push towards $120,000 and beyond in the coming months.

Crypto markets were broadly stable on Sunday, with Ethereum hovering near $2,550 and Solana and Avalanche posting modest gains between 1% and 2%. Traders continue to weigh geopolitical risks against ongoing institutional inflows and upcoming macroeconomic signals, including this week's fresh U.S. core PCE inflation print.

Overall, the current rally in crypto is seen as more structurally sound than previous cycles, with a more accommodating U.S. regulatory environment and persistent institutional inflows fostering sustained demand for digital assets.