Bitcoin Eyes $120K as Tariff Delay Eases Market Jitters

Bitcoin rebounded to $109,600 late Sunday after U.S. President Donald Trump delayed a proposed 50% tariff on European Union goods, giving markets a temporary reprieve from rising trade tensions. The delay followed a call with European Commission President Ursula von der Leyen, who requested more time to finalize a trade agreement. Trump’s new deadline of July 9 helped lift U.S. equity futures, with the S&P 500, Dow, and Nasdaq-100 futures gaining between 0.8% and 1%.

The crypto market reacted quickly. Bitcoin, which had hit a record high of $111,000 earlier in the week, dipped to $108,531 after Trump’s Friday tariff warning but quickly stabilized. Analysts believe the pullback is short-term. Ryan McMillin of Merkle Tree Capital said Bitcoin is acting more like gold, gaining appeal as a non-sovereign asset amid rising global liquidity. He forecasts a push toward $120,000.

Options data support this view, with over $500 million in notional volume at the $120K strike for June expiry on Deribit. Pav Hundal of Swyftx notes traders are factoring in continued institutional interest and macro uncertainty.

Ethereum remained stable around $2,550, while Solana and Avalanche gained modestly. The broader crypto market is seen holding strong amid institutional ETF inflows, which have topped $2.8 billion this month, boosting total Bitcoin ETF holdings to $122 billion.

Analysts say the current rally shows structural strength, buoyed by a friendlier U.S. regulatory stance and growing institutional adoption. However, volatility remains tied to macro risks like trade policy and this week’s upcoming U.S. core PCE inflation data. Still, sentiment leans bullish, with crypto showing resilience against geopolitical headwinds and a shifting global monetary landscape.