Cryptocurrency Market Reacts to U.S.-EU Trade Agreement

Bitcoin Cash Maintains Uptrend Amid Resistance Challenges

Bitcoin Cash (BCH) has demonstrated resilience in its ongoing uptrend, with price movements and trading volumes indicating sustained bullish momentum despite facing resistance near the $600 level. As of July 28, 2025, BCH traded at $589.70 on OKX, maintaining a position above key technical levels such as the 9-day exponential moving average (EMA) and 50-day simple moving average (SMA), which are at $552.40 and $494.40, respectively. This suggests that the bullish trend remains intact, supported by on-chain metrics and accumulation activity.

Price action over the past week highlighted the asset’s volatility. On July 12, BCH briefly surged to $600, a level previously acting as a ceiling, but retreated to $588.20 amid heightened intraday volume. While the $600 threshold remains unbroken, traders have interpreted the consolidation as a temporary pause rather than a reversal. Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators signaled a potential recovery after the price dipped below the critical $580 support level. CoinMarketCap reported a 0.14% daily gain to $583.99, with prices fluctuating between $585 and $605 during the session.

Impact of U.S.-EU Trade Agreement on Cryptocurrency Markets

The U.S.-EU trade agreement signed by President Trump on July 27, 2025, triggered a surge in the U.S. dollar and induced volatility in cryptocurrency markets. The deal, which aims to regulate trade congruence by reducing tariffs and enhancing regulatory harmonization, initially spurred crypto rallies before corrections emerged, underscoring the sector’s sensitivity to macroeconomic shifts. Bitcoin briefly rose above $119,000 amid improved trade optimism but later adjusted to around $118,000, while Ethereum climbed over 3% driven by ETF inflows and institutional demand. The trade deal’s economic implications—reduced import costs and increased cross-border investment—could eventually bolster market confidence, though the immediate dollar strength created a complex backdrop for crypto assets.

The agreement’s impact was compounded by expectations of stable Federal Reserve interest rates (4.25%-4.50%), which typically weigh on non-yielding assets like cryptocurrencies as investors favor cash or bonds. Despite this, Bitcoin demonstrated resilience against large whale sales, such as Galaxy’s 80,000 BTC offload, suggesting a maturing market less susceptible to manipulation. Institutional participation in Ethereum further intensified, with inflows exceeding $2.2 billion and a $78 billion rise in market capitalization, highlighting growing recognition of crypto as a strategic asset rather than a speculative gamble.