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Bitcoin rebounded over the weekend, rising over 1% to above $119,000 on Monday morning as a trade deal between the U.S. and the European Union bolstered investor confidence.
The rally allowed the cryptocurrency to recover modestly from two-week lows. However, investors remain cautious ahead of the U.S. Federal Reserve's interest rate decision to be announced this week and the important crypto policy report expected on July 30.
Other crypto assets also showed stronger movements, as ethereum hit a seven-week high, indicating increased investor interest.
Markets gained strength after the U.S.-EU framework agreement was announced on Sunday. Under the agreement, the customs duty on imports from Europe was reduced from 30% to 15%. The European Union is also expected to buy $750 billion worth of energy from the U.S. and invest hundreds of billions of dollars in defense and infrastructure.
The upbeat sentiment has boosted buying in risky assets such as bitcoin and equities, while reducing interest in safe havens. However, bitcoin remains cautious ahead of two important developments this week.
Investors will focus on the two-day Fed meeting, which ends on Wednesday. The central bank is expected to keep interest rates steady in a range of 4.25%-4.5%. The main attention will be on the signals about possible rate cuts for the rest of the year. A dovish rhetoric may increase interest in low-yielding assets such as Bitcoin.
On the other hand, the U.S. cryptocurrency policy report, expected to be published on July 30, is also critical for the market. The report is expected to clarify plans to create a strategic bitcoin reserve and regulatory frameworks for stablecoins. It is evaluated that these guidelines may increase the confidence of institutional investors.
The altcoin market is experiencing a strong bullish wave amid optimism over the U.S.-EU trade deal. While Bitcoin showed relatively limited movement, many altcoins made stronger gains
Ethereum rose more than 4% to $3,924.15, reaching its highest level since December 2024. This is considered a signal that the market-wide risk appetite is shifting towards altcoins.
XRP, third by market capitalization, rose 3.2% to $3.3. Solana gained 3.5%, cardano 2.4% and polygon 2.2%.
There was also activity on the meme token front. Dogecoin was up 4%, while $TRUMP rose 2.2%.
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