Earlier today, it was officially announced that a trade agreement between the US and the European Union has been reached. This development could significantly impact the economies of both regions and the cryptocurrency market.
US-EU Trade Agreement
Negotiations between the US and the EU have been ongoing for several months and concluded just days before the August 1 deadline. Donald Trump, alongside Ursula von der Leyen, announced that an agreement has been reached. Last month, the EU expressed its intention to balance its export surpluses through substantial energy purchases. Trump made the following remarks:
> "An agreement has been reached with the EU. The EU will invest $600 billion more in the US. They have agreed to allow duty-free trading between countries, granting access to all nations. > The EU will purchase a substantial amount of military equipment from the US. We have agreed on a 15% tariff for cars. The EU will buy hundreds of billions of dollars’ worth of military equipment. This deal will unite us. > Energy is a crucial part of the agreement. They are purchasing a significant amount of energy. The terms on steel will remain the same as before. The UK Prime Minister is pleased with the EU agreement."
Reactions to the Deal
Following the announcement of the deal, the cryptocurrency market reacted with a significant price increase. The price of Bitcoin rose above $119,000, indicating a reduction in fears regarding tariffs. This situation especially highlights the potential for sudden price surges in altcoins, such as Ethereum, which is priced above $3,800.
Impact on Cryptocurrencies
The agreement may also influence Federal Reserve policy. If Jerome Powell is satisfied with the deal, it might lead to discussions about potential interest rate cuts for September, positively affecting the cryptocurrency market.
The US-EU trade agreement represents a significant step toward economic cooperation, which could greatly influence global financial markets, including cryptocurrencies.
