Bitcoin Price Surge: Traders React to Trump’s Tariff Delay

Bitcoin’s price recently saw a significant uptick, crossing the $109,000 mark during late trading hours on May 25. This surge can be directly attributed to President Donald Trump’s decision to postpone the implementation of tariffs on European Union (EU) goods until July 9. As traders responded positively to the news, Bitcoin climbed by as much as 3.2%, reaching an intraday high of $110,100 on May 26 after dipping to $106,660 a day earlier.

The Impact of Tariff Delays on Bitcoin

The decision to extend the EU tariff deadline provided much-needed relief for the cryptocurrency market. Initially, Trump proposed a hefty 50% tariff on EU imports, which had sent Bitcoin’s value down to below $108,000. However, after a constructive conversation with European Commission President Ursula von der Leyen, who noted that the EU required more time to negotiate a favorable agreement, optimism returned to risk assets, including Bitcoin.

In a message reflecting the cooperative spirit of their discussions, Von der Leyen tweeted, “Good call with @POTUS. The EU and US share the world’s most consequential and close trade relationship.” This sentiment resonated well within the trading community, indicating a potential for renewed collaboration.

Bitcoin on a Bullish Streak

As Bitcoin closed above $109,000 on May 25, it marked the seventh consecutive bullish weekly close. Should this momentum carry forward, the cryptocurrency could potentially celebrate its eighth consecutive weekly win by June 1. Historically, markets that experience such an extended period of positive closes are often followed by substantial gains over the next six to twelve months.

Crypto analyst Carpe Noctom noted, “Since 2014, an 8-week streak of green weekly closes has occurred only three times.” He warned, however, that historically, the market tends to experience a brief downturn soon after such streaks before embarking on longer-term gains.

Key Levels to Watch for Bitcoin’s Future

For Bitcoin to continue its ascent, flipping its all-time high of $111,900 into reliable support is crucial. According to reports from Cointelegraph, if Bitcoin’s price breaks past the resistance zone between $109,588 and $111,980, it could potentially reach new record highs of around $130,000. Traders are also keeping a close watch on various support levels, including a major demand zone between $104,500 and $106,000, as well as daily support at $102,500.

Notably, trader Micky Bull remarked that it’s “very critical” for Bitcoin to maintain its position above the previous all-time high of $109,000, which was achieved earlier in the year. If the cryptocurrency can hold onto critical points of interest between $105,500 and $107,000, experts believe it may well set its sights on $125,000 in the coming weeks.

Final Thoughts

While the extension of the tariff deadline undoubtedly ignited Bitcoin’s recent rally, the cryptocurrency market remains sensitive to such geopolitical dynamics. With traders gearing up for a potential eighth week of upward movement, Bitcoin enthusiasts are hopeful for a bullish summer. History suggests that if past trends hold true, we could see Bitcoin not only recover but thrive in the latter half of 2025.

For those invested in Bitcoin or looking to step into the cryptocurrency market, it’s vital to remain aware of these upcoming price levels and market conditions. Always ensure you conduct thorough research before making any investment decisions.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making decisions.

For more insights on the volatile world of cryptocurrencies, check out our articles on Bitcoin’s price predictions and trends in the digital asset space.

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