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Bitcoin prices edged higher on Monday, rebounding from two-week lows, buoyed by positive sentiment surrounding the recent U.S.-EU trade agreement. Despite this recovery, Bitcoin remained range-bound as traders awaited key developments this week, including the U.S. Federal Reserve’s meeting and the U.S. crypto policy report due on July 30.
Bitcoin’s Price Movement
Bitcoin traded at $119,552.6, marking a 1.1% increase as of 02:18 ET (06:18 GMT). The cryptocurrency had been under pressure over the weekend, but sentiment improved with the easing of trade uncertainties.
U.S.-EU Trade Deal Bolsters Risk Sentiment
The U.S.–EU framework agreement, announced Sunday, helped alleviate some political risk and trade uncertainty, boosting investor confidence. Under the deal, tariffs on European imports were set to be reduced to 15%, down from the previously threatened 30%, while the EU committed to purchasing $750 billion worth of U.S. energy and investing heavily in arms and infrastructure.
This trade deal reduced the political risk tied to ongoing trade tensions, encouraging investors to move away from safe-haven assets like gold and into riskier assets, including equities and Bitcoin.
Federal Reserve Decision and Crypto Policy Report
With the U.S. Federal Reserve’s two-day meeting scheduled to end on Wednesday, market participants are looking for any hints on future interest rate moves. The central bank is expected to hold its key interest rate at 4.25%–4.50%, but traders are especially focused on comments regarding potential rate cuts later in the year. A dovish tone from the Fed could provide further support for Bitcoin by lowering returns on low-yield, safe assets.
In addition, the U.S. crypto policy report, due for release on July 30, will be closely watched. This report is expected to outline plans for a strategic Bitcoin reserve and offer greater regulatory clarity for the crypto space, including stablecoins. Clearer regulatory guidelines are expected to boost institutional confidence in the crypto market, potentially spurring more investment.
Altcoins Perform Strongly
While Bitcoin remained in a narrow trading band, altcoins experienced sharper gains on Monday. Ether, the world’s second-largest cryptocurrency, surged 4.1%, reaching $3,924.15, its highest level since mid-December 2024. XRP climbed 3.2% to $3.30, while Solana gained 3.5%, Cardano added 2.4%, and Polygon rose 2.2%.
Among the meme tokens, Dogecoin jumped 4%, and $TRUMP rose 2.2%.
Outlook
Despite the recent uptick, Bitcoin’s price movements remain cautious. The cryptocurrency is likely to stay within a narrow trading range as market participants await further policy catalysts. While optimism surrounding the U.S.-EU trade deal has encouraged some risk-taking, broader macroeconomic risks, including Fed guidance, continue to restrain aggressive price movements in the crypto market.
