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Bitcoin reached a new all-time high of $122,000 in early Asian trading on Monday, despite U.S. President Donald Trump's latest tariffs targeting Mexico, Canada and the EU.
The tariffs, reaching up to 30% on the U.S.' largest trade partners, have had limited impact on global markets, while also boosting risk appetite toward volatile instruments like bitcoin.
Trump announced on July 13 that he planned to impose a 30% tariff on imports from Mexico and the European Union. As both sides prepare to respond to this move, the European Commission has indicated that it could implement retaliatory measures in early August if no agreement is reached.
However, this news does not implicitly affect bitcoin; investor sentiment across global markets continues its upward trend, supported by the influx of more than $2 billion in new capital into digital assets in July alone.
Rising commercial demand also boosts optimism in the market, as Bitwise data shows that 46 companies have added bitcoin to their balance sheets, alongside strong capital inflows into spot bitcoin exchange-traded funds managed by major investment firms such as BlackRock and Fidelity.
The weakening of the U.S. dollar supports this momentum, with the Dollar Index falling below its 200-day moving average on a weekly basis and declining by more than six points.
The U.S. Senate's approval of a stablecoin regulation bill in June and lawmakers' renewed discussions on the creation of a Strategic Digital Asset Reserve have bolstered confidence among institutional investors.
The direction of this interest may change with new inflation data coming from the U.S. The Bureau of Labor Statistics will release Consumer Price Index data for June on Wednesday, July 16. Economists expect core inflation to rise by 0.3% month-on-month, reaching an annual rate of 2.9%. If these forecasts materialize, they could put pressure on risky assets like bitcoin and prompt the Fed to delay its interest rate cut plans.
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