Bitcoin Surpasses $118,000 as Global Dollar Strengthens Amid Trump Tariff Moves
September and December options reflect growing bets on BTC reaching $140,000–$150,000.
Quick overview
- Bitcoin (BTC) reached a new all-time high of $118,125 before settling around $116,865, driven by institutional demand and optimism about U.S. crypto legislation.
- The U.S. dollar strengthened amid global trade uncertainty following President Trump's tariff announcements, impacting various currencies negatively.
- Despite geopolitical tensions, the crypto market remains resilient, with analysts citing strong institutional flows and positive sentiment around upcoming U.S. regulatory discussions.
- Ethereum (ETH) also saw significant gains, climbing to a five-month high, while Bitcoin options markets indicate expectations for further price increases.
Bitcoin (BTC) surged past $118,000 for the first time on Friday, setting a new all-time high of $118,125, before easing slightly to around $116,865.
The rally is being fueled by continued institutional demand, ETF flows, and growing optimism surrounding U.S. crypto legislation.
At the same time, the U.S. dollar strengthened across the board, buoyed by investor demand for safer assets amid a new wave of global trade uncertainty triggered by President Donald Trump’s tariff announcements.
Tariff Turbulence Rattles FX Markets
Trump’s announcement of fresh import tariffs—including a 35% duty on Canadian goods starting August 1—sent shockwaves through FX markets:
- Canadian dollar: -0.27%, falling as much as 0.5% intraday to 1.3693 per USD
- Euro: -0.2% to $1.1682, down ~0.9% for the week
- Australian dollar: -0.11% to $0.6581
- Brazilian real: flat at 5.5321, down 2% for the week (worst in nearly 5 months)
- British pound: -0.16% to $1.3558, on track to lose 0.6% for the week
- New Zealand dollar: -0.34% to $0.6015
- Japanese yen: -0.44% to 146.91 per USD, heading for a 1.6% weekly loss
The U.S. dollar index rose 0.2% to 97.79, up 0.8% on the week, reflecting a shift toward defensive positioning in response to geopolitical and trade concerns.
“Uncertainty is temporarily favoring dollar stability. I wouldn’t be surprised if this trend holds for the next few weeks,” a currency strategist noted.
Bitcoin’s Breakout Defies Trade Fears
Despite rising global tensions, risk appetite in the crypto space remains strong. Analysts attribute Bitcoin’s breakout to several drivers:
- Institutional flows into spot ETFs
- Fed rate cut expectations, reinforced by recent FOMC minutes
- Legislative optimism around the upcoming U.S. “Crypto Week,” during which Congress is expected to debate three
key bills (CLARITY Act, Anti-CBDC Act, and GENIUS Act)
“This new record shows global risk appetite is holding firm despite tariff noise, and optimism is high regarding U.S. regulatory clarity,” said one analyst.
Ethereum (ETH) also rallied, climbing 6% to a five-month high of $2,956. Meanwhile, Bitcoin options markets signal expectations of further gains: Short-term contracts show open interest clustering around $115,000–$120,000. September and December options reflect growing bets on BTC reaching $140,000–$150,000.
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