#alerta Bitcoin traded higher this Tuesday, 2, driven by a risk appetite in the markets triggered by trade negotiations from the United States. The announcement of an agreement with Vietnam and the prospects that new deals might be concluded before the July 9 deadline provided momentum to risk assets.
Shortly after 4:00 PM (Brasilia time), Bitcoin was up 3.63%, at $109,466.73, and Ethereum was up 6.86%, at $2,577.26 according to Binance quotes.
Capital Economics warns that, with the end of the Trump administration's trade truce set for July 9, there is a risk that "huge tariffs" will come into force for countries that have not reached agreements with the United States. "We suspect that new last-minute concessions will be made to allow extensions for most countries," says the report. "But some of the 'worst offenders' may face punitive measures."
Bitcoin is rising but continues to trade within a relatively narrow range, in the absence of new catalysts that would significantly move the cryptocurrency. Uncertainty about U.S. trade policy keeps investors cautious about risk assets, as President Donald Trump's suspension of reciprocal tariffs is set to end on July 9. Trump said on Tuesday that he has no plans to extend the suspension. However, there are hopes that he may still extend the tariff deadline, given his history of initial threats and eventual retreats, says Patrick Munnelly from Tickmill Group.
Bitcoin is likely to reach new all-time highs in the second half of this year, with increased flows of exchange-traded funds (ETFs) and corporate bond purchases, says Geoff Kendrick from Standard Chartered (LON:STAN). These flows totaled $245,000 in the second quarter and may exceed that level in the third and fourth quarters, he states. Bitcoin would also rise if President Trump announced the replacement of Federal Reserve Chair Jerome Powell early, as this could lead markets to price in earlier interest rate cuts. The potential approval of the stablecoin bill in the U.S. would also support Bitcoin.
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