Bitcoin (BTC) recorded a notable rise on Sunday evening, reaching around $109,600, after US President Donald Trump announced a delay in imposing a 50% tariff on European Union imports until July 9. The decision, which followed a call with European Commission President Ursula von der Leyen, provided the markets with temporary relief amid rising global trade tensions.

Following this announcement, US stock futures recorded a slight increase, indicating cautious optimism within economic circles regarding the possibility of easing the trade dispute across the Atlantic.

Trump had suggested in April to impose a 20% tariff on most European imports, before reducing it to 10% to allow room for negotiations.

However, he threatened again last Friday to raise tariffs to 50% starting June 1, before retracting and postponing implementation on Sunday evening, which put the markets back into a state of cautious anticipation. Click here for advertising services or press releases for the crypto project.

A week filled with crucial economic data.

Alongside this political activity, markets are preparing for a crucial economic week, with important inflation data and anticipated earnings results.

Traders continue to balance geopolitical risks with the flow of institutional investments and upcoming economic signals, primarily the core inflation data in the United States, expected on Friday.

Jerome Powell, the Chairman of the Federal Reserve, is expected to deliver a speech on Monday that will reveal the upcoming monetary policy direction, while minutes from the Federal Open Market Committee (FOMC) meeting will be published on Thursday, providing clearer signals about the Fed's stance on interest rates and inflation.

Inflation indicators top the list of awaited events, with Australian Consumer Price Index (CPI) data and the Core Personal Consumption Expenditures (Core PCE) index in the United States, which is one of the reference indicators for the US Federal Reserve.

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Bitcoin whales are betting on the $120,000 level.

Before Trump unleashed his latest tariff threat, the price of Bitcoin had breached the $111,000 barrier, marking a new historical peak, raising questions among analysts about whether this increase differs from previous cycles.

However, the sudden announcement on the "Truth Social" platform temporarily flipped the equation, leading Bitcoin to drop by 1.8% to settle around $108,500.

Despite this decline, confidence remains among traders who are betting on positive outcomes from US trade policies.

Ryan McMillen, Investment Director at Merkle Tree Capital, a digital currency fund management company, says:

"Bitcoin is increasingly behaving like gold, being an asset not subject to government authority and a hedge against inflation. With the global M2 money supply increasing in recent months, gold has reached record levels, and it seems Bitcoin is following in its footsteps. We expect this trend to continue, pushing Bitcoin towards $120,000 and above in the coming months."

This opinion is supported by Baff Hundal, Senior Analyst at Swyftx platform, who noted that options traders on Deribit are currently focusing on the $120,000 price level in June contracts, with a theoretical trading volume exceeding half a billion dollars at this level.

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The overall scene supports institutional demand: Bitcoin leads the charge... while alternative currencies await.

Since early May, Bitcoin (BTC) has risen more than 18%, driven by stable institutional demand for spot Bitcoin ETF funds, which recorded net inflows exceeding $2.8 billion this month. This raised the total holdings of these funds to over $130 billion, according to data from the sosovalue platform.

However, the rise temporarily lost momentum in April, when the US administration announced a general framework for tariffs. Bitcoin fell about 2% after the threats on Friday.

McMillen says: "Talking about tariffs may bring some bumps in the road, and we hope to see more trade agreements soon."

Analysts indicate that digital assets still clearly react to macroeconomic policies, especially at the intersection of trade dynamics and monetary policy. However, some believe that the current rise in the digital market is based on stronger fundamentals than previous cycles.

In a market report on Friday, QCP Capital wrote: "The overall outlook still leans positive, especially with the improving regulatory environment in the US and the continued influx of institutional capital, whether through ETF funds or direct allocations, which enhances structural demand for digital currencies."

Summary:

Despite the sharp fluctuations, Bitcoin now seems to reflect growing confidence among major investors in the ability of digital assets to withstand geopolitical crises, with continued institutional capital inflow and improved regulatory trends.

With $120,000 remaining a prominent target in options contracts, markets are entering a phase of cautious optimism amid ongoing trade negotiations and upcoming economic reports.