The US and EU reached a key tariff agreement to avoid escalating the trade war, with Bitcoin and Ethereum leading the rise in the crypto market.

Before the August 1 tariff deadline set by President Trump, the United States and the European Union successfully reached a new trade framework agreement. This news alleviated market concerns about escalating trade friction between the US and Europe, immediately boosting optimistic sentiment in the Crypto Assets market, with Bitcoin (BTC) and Ethereum (ETH) prices rising in response. This event once again confirms the positive impact of easing geopolitical tensions on the price movement of crypto assets.

[US and EU Sign New Tariff Agreement to Avoid Escalation of Trade War] After a period of intense negotiations, the United States and the European Union (EU) reached an important trade agreement before the August 1 tariff deadline. According to Reuters, the new arrangement will include a 15% tariff on EU export goods entering the United States, while Europe commits to purchasing American energy and military equipment.

US President Donald Trump met with European Commission President Ursula von der Leyen in Scotland to finalize the details of the agreement. This new agreement means that the EU will avoid paying a 30% tariff on its goods exported to the US before the August 1 deadline set by Trump.

Previously, Trump imposed a 30% tariff on the EU due to trade deficits in key areas, and von der Leyen had promised to negotiate with the United States. However, a 15% tariff is considered an unsatisfactory result in the negotiation process, and some EU member states have been hoping to reach a zero-for-zero tariff agreement.

Trump stated when discussing the new protocol: "The EU has agreed to purchase $750 billion worth of American energy... They will increase their investment in the U.S. by an additional $600 billion on top of what is already in place."

【The positive impact of the US-EU trade agreement stimulates the crypto market, with Bitcoin, Ethereum, and BNB leading the surge】 A few minutes after the announcement, CoinMarketCap data showed that the Bitcoin price (BTC/USD live quote) rose nearly 1%, consolidating its control around the $119,000 mark. Earlier that day, driven by news of a 90-day trade truce between China and the US, Bitcoin had surged to the $119,000 level.

At the same time, the second largest crypto asset Ethereum (ETH price movement analysis) has risen nearly 3% in the past 24 hours, reaching $3,845. Other altcoins have also joined this widespread crypto assets market rebound.

As of the time of writing, the total market capitalization of global Crypto Assets has reached $3.93 trillion, while the 24-hour trading volume (a liquidity indicator for the crypto market) is $133.54 billion, an increase of 3% from the previous day. Earlier reports about the imminent trade agreement between Europe and the United States had pushed the Bitcoin price to rebound earlier that week.

Conclusion: The successful resolution of the tariff crisis between the US and Europe has significantly boosted the confidence of global financial markets and Crypto Assets investors, once again highlighting the key driving role of macroeconomic events and policy changes on the price movement of Crypto Assets. Investors need to closely monitor the specific implementation of subsequent trade agreements and their continued impact on market risk appetite.