Bitcoin Smashes $109K Benchmark as Trump Kicks EU Tariff Can Down the Road
Digital gold surges past six figures—just as geopolitical tensions take another turn.
Trump’s tariff delay sparks market relief rally... or maybe just another excuse for crypto to moon.
Wall Street analysts scramble to justify how ’macro uncertainty’ somehow always benefits Bitcoin.
Trump Tariff Delay Signals Possible Thaw in US-EU Trade Tensions
The delay followed a productive call with European Commission President Ursula von der Leyen, who sought additional time to secure a favorable agreement. This de-escalation reduced fears of an imminent trade war, which had previously weighed on global markets.
Last month, Trump announced an initial 20% tariff on EU goods, but soon revised it to 10% with a grace period until early July. The shifting timeline reflects the administration’s unpredictable trade strategy, which has continued to rattle global markets.
However, investors welcomed the latest reprieve, viewing it as a sign of possible resolution and improved dialogue between Washington and Brussels.
Market sentiment had already begun to stabilize after a volatile stretch in April, when growth fears and aggressive trade posturing prompted a broad sell-off across asset classes. Analysts say the pause in tariff escalation has helped lift appetite for risk, leading traders to rotate into Bitcoin and other cryptocurrencies.
Bitcoin Hit ATH Above $111K on ETF Momentum and Risk-On Sentiment
The move in bitcoin is also tied to broader structural demand. Last week, the asset briefly touched a record high of $111,814, buoyed by continued inflows from exchange-traded funds and corporate investors.
Spot Bitcoin ETFs saw net weekly inflows of $2.75b between May 19 and May 23, according to data provider SoSoValue. ethereum ETFs posted $248m in inflows during the same period, with no outflows across the board.
Over the past 18 months, Bitcoin has outpaced the S&P 500 by more than 100 percentage points, cementing its role as a high-beta asset that draws capital during risk-on cycles. Investors have increasingly followed the lead of corporate buyers like MicroStrategy’s Michael Saylor, who helped normalize large-scale Bitcoin accumulation among institutions.
Monday’s rally serves as a reminder of how sensitive Bitcoin remains to macroeconomic developments, particularly shifts in US trade policy. While the de-escalation offered immediate relief, market participants remain cautious, mindful of how quickly sentiment can reverse in response to the next political move.
