TLDR
Bitcoin recovered to $109,637 after Trump extended EU tariff deadline from June 1 to July 9, 2025
Trump initially threatened 50% tariffs on EU goods but agreed to extension after call with EU Commission President
Bitcoin derivatives saw increased activity with 24-hour open interest rising 2.59% to $76.66 billion
US equity futures gained up to 1% while gold dropped 0.3% as risk appetite improved
Analysts maintain bullish outlook with $120,000 Bitcoin price target for June despite trade tensions
Bitcoin climbed back above $109,000 on May 26 as President Donald Trump extended his deadline for imposing tariffs on European Union goods. The cryptocurrency rose 1.4% in 24 hours to reach $109,637 during early Asian trading hours.
The recovery comes after a volatile period that saw Bitcoin hit an all-time high of $111,814 on May 22. The digital asset then dropped to around $107,500 before the latest rebound.
Trump announced on May 25 that he would delay implementing 50% tariffs on EU goods until July 9, 2025. The original deadline was set for June 1, 2025.
The decision followed a phone call with European Commission President Ursula von der Leyen. She requested more time for trade negotiations between the US and EU.
Trump posted on Truth Social confirming the extension. He stated it was his “privilege” to grant the additional time for discussions.
The tariff threat had created uncertainty in global markets. Trump initially proposed 20% tariffs on EU imports in April before reducing them to 10%.
On May 23, he escalated the threat to 50% tariffs if negotiations failed by June 1. This announcement caused Bitcoin to fall nearly 2% at the time.
Market Response Shows Risk Appetite Return
Financial markets responded positively to the tariff delay announcement. US equity futures gained across major indices on Monday morning.
S&P 500 futures rose 0.9% while Dow futures added 0.8%. Nasdaq-100 futures climbed 1% in early trading.
Gold prices dropped 0.3% to $3,346.59 per ounce. The decline suggests investors moved away from traditional safe-haven assets.
Bitcoin derivatives markets showed increased activity alongside the price recovery. Open interest increased 2.59% to $76.66 billion over 24 hours.
Trading volume in Bitcoin derivatives jumped 10.85% to $89.91 billion. Higher volume and open interest typically indicate renewed trader confidence.
Analysts Maintain Bullish Bitcoin Outlook
Market analysts continue to express optimism about Bitcoin’s price prospects. Many point to institutional demand and improving regulatory conditions.
Ryan McMillin from Merkle Tree Capital noted Bitcoin’s correlation with gold recently. He sees both assets benefiting from global monetary expansion.
McMillin expects Bitcoin to push toward $120,000 and beyond in coming months. This target aligns with other analyst predictions.
Pav Hundal from Swyftx exchange highlighted options trading activity. Over half a billion dollars in notional volume sits at the $120,000 level for June contracts.
The EU exported more than $600 billion in goods to the US last year. The bloc had paused retaliatory tariffs on $23 billion in US imports.
EU officials are consulting on additional measures targeting $95 billion worth of American goods. The July 9 deadline gives both sides time to negotiate.
Other major cryptocurrencies remained stable during the period. Ethereum traded near $2,550 while Solana and Avalanche posted modest 1-2% gains.
Bitcoin has gained 15% over the past 30 days despite recent volatility. The cryptocurrency continues showing sensitivity to macroeconomic policy developments.
QCP Capital noted the current rally feels more structurally sound than previous cycles. They cited improved US regulatory environment and persistent institutional inflows as key factors.
