Bitcoin reclaims $109K as Trump extends EU tariffs deadline to allow for talks

Bitcoin increased 1.4% on the previous day to trade at $109,637 in the early Asian hours of May 26, as reducing trade tensions between the United States and the European Union bolstered market optimism.

The minor comeback comes after a turbulent week in which Bitcoin (BTC1.48 %) momentarily hit an all-time high of $111,814 on May 22 before dipping to around $107,500. The asset is still up 15% over the last 30 days. Bitcoin derivatives also experienced increased market activity. 

According to Coinglass, 24-hour open interest jumped 2.59% to $76.66 billion, while trading volume increased 10.85% to $89.91 billion. Rising derivatives volume and open interest typically reflect renewed trading confidence and the accumulation of positions, often in expectation of volatility or higher price movement.

The bounce occurred after US President Donald Trump said on Sunday, May 25, that he had agreed to delay the June 1 deadline for placing 50% tariffs on EU imports. In a post on Truth Social, Trump stated that European Commission President Ursula von der Leyen has requested extra time for trade talks, and a new deadline has been established for July 9. 

The statement came after a brief moment of stress. Global markets were frightened when Trump promised to impose 50% tariffs on May 23 if discussions failed. For the time being, the unexpected reversal has offered some relief.

Financial markets reacted positively to the announcement, with US equity futures creeping higher. In early Monday trade, S&P 500 futures increased by 0.9%, Dow futures by 0.8%, and Nasdaq-100 futures by 1%. Gold, meanwhile, fell 0.3% to $3,346.59 per ounce. 

As risk appetite improves, the fall in gold prices indicates a shift away from traditional safe havens. This shift in perception has benefited Bitcoin, which is typically viewed as a speculative risk asset. In the meantime, the de-escalation has allowed traders to momentarily reset expectations, but Trump’s trade policies continue to cause concern in foreign markets. Both the cryptocurrency and traditional markets will be watching for any new developments in the US-EU negotiations now that the July deadline has been set. 

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