Investing.com— Following a slight recovery from two-week lows in weekend trading, $BTC traded above $119,000 on Monday as the U.S.-EU trade agreement increased investor risk appetite.
But in anticipation of the Federal Reserve's decision this week and a significant U.S. crypto policy report that is due on July 30, the cryptocurrency stayed range-bound.
At 02:18 ET (06:18 GMT), the price of bitcoin was last quoted at $119,552.6, up around 1.1%.
While Ether was trading at a seven-week high, other cryptocurrencies saw more significant gains.
July 30 is the deadline for the US Fed's crypto policy report.
The framework agreement between the US and the EU, which was unveiled on Sunday, gave markets some relief.
The pact imposes a 15% tariff on European imports, down from the threatened 30%, and includes commitments for EU to purchase $750 billion of U.S. energy and infrastructure. The agreement decreased trade uncertainty and political risk. Investors shifted from safe-haven assets to riskier ones, including stocks and Bitcoin, as a result of this improved confidence.
Now, focus is shifting to the Federal Reserve's two-day meeting, which concludes on Wednesday. It is generally anticipated that the central bank will maintain its benchmark rate between 4.25% and 4.50%.
Later in the year, traders will pay close attention to reports about potential rate decreases. A dovish stance would help bitcoin even more by lowering yields on safe, low-yield investments.
Another important event is the July 30 release of the U.S. crypto policy report. It is expected to outline plans for a strategic bitcoin reserve and provide greater regulatory clarity for sectors including stablecoins.
