A wide range of new trade agreements between the US and the EU (European Union) could mark a turning point in global risk sentiment and could support Bitcoin (BTC) and other risk assets.
Meanwhile, Crypto is monitoring another hiatus on customs policies between the US and China.
Trump announces US-EU trade contract: Everything you need to know
The latest US EU contract, worth around $1.35 trillion, includes a drastic commitment from the European bloc.
Under the terms of the contract, the EU will purchase $750 billion worth of US energy, invest $600 billion in the US economy, and purchase hundreds of billions worth of US-made military equipment.
In exchange, a uniform 15% tariff applies to all US EU traded products that will replace the previously fragmented tariff rates.
Trump highlighted the size of the transaction and revealed that American goods will enter the EU market with zero tariffs. This shows a dramatic reversal from years of trade tensions between the two allies.
“This deal with the European Union is the biggest thing I’ve ever made, but we’re just starting out,” he said.
Thomas Lee, research director at FundStrat Global Advisors, called the deal the removal of key “tail risk” for the market.
“This removes negative ‘tail risk’ events = good for stocks,” Lee posted on X (Twitter).
Traditionally, macro fear reductions tend to bring profits to stocks and weaken the bullish case of Bitcoin as a hedge or risk-off asset.
However, in today’s hybrid market structure, where Bitcoin is increasingly treated as a risky asset by institutions, it can benefit in the short term as risk preferences return.
Reducing geopolitical uncertainty and global trade frictions often lead to a more risk-on environment for crypto markets, particularly Bitcoin.
Increased integration of Bitcoin into the institutional portfolio means that macrocatalysts such as reducing tail risk can amplify capital flows to assets.
Furthermore, global tariff resharing can affect the macro variables that crypto traders view closely: currency markets, dollar strength, and inflation dynamics.
New tariff rates in countries such as Canada (35%), Mexico (30%) and Brazil (50%) have been set to take effect on August 1, and a temporary 90-day extension on US-China tariffs will allow global capital flows to see meaningful real locations in the coming months.
This development could provide a rare and clear moment for crypto investors facing the background of uncertain macros.
It can provide a milder trading environment, stronger dollar-aligned capital flows, and potential tailwinds for risky assets like Bitcoin.
“President Trump has unleashed one of the world’s biggest economies. The European Union is set to open a $20 trillion market,” commented U.S. Secretary of Commerce Howard Lutnick.
Bitcoin has traded at $119,060 at the time of this writing, up a modest 0.78% over the past 24 hours.
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