- US-EU trade deal signals possible macroeconomic stability.
- Bitcoin surged significantly post-announcement.
- Displayed positive impact on equities and cryptocurrencies.
The United States and European Union have agreed on a $1.35 trillion trade deal, negotiated by President Donald Trump and EU Commission President Ursula von der Leyen.
The deal removes macroeconomic fears, positively influencing traditional equities and Bitcoin, with Bitcoin surging nearly 12% following the announcement.
US-EU $1.35 trillion trade deal, brokered by President Donald Trump and EU Commission President Ursula von der Leyen, targeted to eliminate major macroeconomic fears. Thomas Lee hailed this as reducing a critical “tail risk” for markets.
Negotiated by Donald Trump and Ursula von der Leyen, the deal involves major commitments from both sides. Thomas Lee emphasized the removal of macroeconomic uncertainties as beneficial for both equities and Bitcoin, suggesting a positive shift in market sentiment.
“This removes a negative ‘tail risk’ event = good for equities,” said Thomas Lee, Head of Research, Fundstrat Global Advisors.
Bitcoin surged nearly 12% to $119,000-$120,000 following the trade deal’s announcement. The bullish market response also affected large-cap altcoins, such as BNB, which reportedly broke all-time highs.
The deal signifies substantial commitments: the EU invests $600 billion in the US, while the US purchases $750 billion in European resources. Reduced macro fears boost equities and cryptocurrencies, underlining their shifting roles as risk or hedge assets.
The deal draws parallels with the US-China trade agreement, which similarly reduced global uncertainties. Historical tendencies show trade agreements lifting equities and cryptocurrencies, marking them as attractive investment considerations amidst macroeconomic changes.
The US-EU trade deal may lead to favorable financial market reactions while reinforcing Bitcoin as a viable investment. Analysts and fund managers recognize reduced macro fears as catalysts for increased allocations in risk assets like Bitcoin and other massive cryptocurrencies.
