Crypto Markets Rally on Trade Deal Hopes, Shaking Off Earlier Tariff Jitters

The cryptocurrency market staged a notable recovery over the weekend, fueled by optimistic comments from U.S. Treasury Secretary Scott Bessent regarding potential trade deals ahead of a critical July deadline. Bitcoin (BTC) led the charge, surging past the $108,000 mark and briefly touching a 24-hour high of $109,656.72. As of the latest trading sessions, BTCUSDT was hovering around $108,017, posting a modest daily gain but demonstrating resilience after a period of consolidation. The positive sentiment rippled across the altcoin market, with Ethereum (ETH) climbing 1.5% to trade near $2,533 after reaching a daily high of $2,603.59. Other major tokens saw even more significant gains, with the payments-focused token XRP rising over 2% to $2.26, and the popular meme coin Dogecoin (DOGE) jumping by 3%.

Bessent Signals Progress Ahead of July 9 Deadline

The primary catalyst for the market's upward momentum was an interview with Treasury Secretary Scott Bessent on CNN. According to a report from Reuters covering the interview, Bessent indicated that the U.S. is nearing the finalization of several key trade agreements. This news comes ahead of the July 9 deadline, when a temporary pause on higher tariffs, first announced on April 2, is set to expire. Bessent warned that countries perceived as 'foot-dragging' could see tariffs revert to higher levels by August 1 if deals are not reached. "President Trump's going to be sending letters to some of our trading partners saying that if you don't move things along, then on August 1, you will boomerang back to your April 2 tariff level," Bessent stated. This development has been interpreted by traders as a positive sign, reducing the macroeconomic uncertainty that has recently weighed on risk assets, including cryptocurrencies. The initial "Liberation Day" tariff announcement in April had previously sent shockwaves through financial markets, causing BTC to plunge to $75,000, highlighting the market's sensitivity to such geopolitical events.

This weekend's optimism stands in stark contrast to the muted price action seen late last week. On Friday, the market largely shrugged off renewed tariff threats from President Trump, this time directed at Canada over a proposed Digital Services Tax. Despite the announcement of a seven-day period to determine new tariffs, Bitcoin remained relatively stable, trading in a tight range with a 24-hour low of $107,570. The broader crypto market also showed little concern. This complacency, as noted by Coinbase analysts in a research report, stemmed from a belief that the potential economic risks were not yet reflected in hard data and that new tariffs might not be as inflationary as initially feared.

Crypto Stocks and Miners Show Divergent Performance

While digital assets themselves showed resilience, the associated equity markets painted a more mixed picture. Crypto-adjacent stocks experienced significant volatility. On Friday, Coinbase (COIN) shares fell by 6%, while the stablecoin issuer Circle (CRCL) saw its stock plummet by a staggering 16%. This divergence highlights that traders may be differentiating between direct exposure to cryptocurrencies and the corporate health of publicly traded crypto firms. The Bitcoin mining sector also displayed varied performance. Hut 8 (HUT) declined by 6.5%, whereas Core Scientific (CORZ) had previously surged over 30% on Thursday following reports of a potential acquisition offer from AI hyperscaler CoreWeave. This news underscores a growing intersection between the AI and crypto mining industries, creating unique, event-driven trading opportunities separate from the broader market trends. For traders, this means monitoring not just token prices but also M&A activity and cross-sector developments for potential alpha.

From a technical standpoint, Bitcoin's ability to hold support above the $107,500 level and push towards resistance at $109,600 is a constructive sign for bulls. The ETH/BTC pair also showed strength for Ethereum, gaining 0.59% to trade at 0.02358, suggesting renewed interest in the leading altcoin. Other altcoins like Solana (SOL) and Cardano (ADA) consolidated, trading at $148.28 and $0.5779, respectively, after experiencing minor pullbacks. Trading volumes remain moderate, with the BTCUSDT pair showing a 24-hour volume of around 10.2 BTC on some exchanges, indicating that while optimism is present, a major influx of new capital has yet to fully materialize. Traders will be closely watching for a definitive break above $110,000 for BTC as confirmation of a new leg up, with geopolitical headlines surrounding trade negotiations remaining the key variable in the near term.