Bitcoin Falls Even as U.S., EU Reveal Deal on Trump Tariffs

Bitcoin is facing a downtrend today, having lost all the gains recorded yesterday. This price decline comes despite the U.S. and E.U. revealing the details of their trade agreement on the Trump tariffs.

Bitcoin Falls Below $113,000 Despite U.S. and E.U. Deal

TradingView data shows that the flagship crypto has fallen below the $113,000 psychological level. BTC has dropped from an intraday high of around $114,800 and is currently trading at around $112,200.

This Bitcoin price decline has occurred despite the U.S. and the E.U. joint statement on the trade agreement regarding Trump tariffs. According to the statement, the U.S. will now impose a 15% tariff on E.U. goods, as opposed to the 30% Trump had initially imposed.

However, U.S. cars and other industrial goods imports from the region would not be subject to this tariff. Additionally, aircraft, aircraft parts, generic pharmaceuticals, and pharmaceutical ingredients from the E.U. to the U.S. are also not subject to the tariff.

CoinGape had earlier reported that the U.S. and the E.U. had reached a tariff deal on July 27. However, both parties hadn’t signed an agreement back then, which is what the latest was about. The news was likely already priced in, considering that Bitcoin and the broader crypto market rallied back then.

Commenting on the deal, U.S. Commerce Secretary Howard Lutnick noted that they have finalized the historic Framework Agreement on Reciprocal, Fair, and Balanced trade. He further remarked that the E.U. has agreed to open its $20 trillion market.

Possible Reasons For The BTC Decline

The Bitcoin price and the broader crypto market are likely declining due to the falling odds of a 25-basis-point (bps) September Fed rate cut. The odds of a cut have dropped from as high as 99% to 71%.

Before now, the market had already been pricing in the possibility of the first rate cut this year. A cut is typically bullish for crypto prices since it boosts risk-on sentiment and could inject more liquidity into these assets.

Meanwhile, Bitcoin is also declining due to the massive outflows that the BTC ETFs are currently witnessing. As CoinGape reported, these funds have recorded four consecutive days of net outflows, with almost $1 billion leaving these ETFs in the process.

Due to these outflows, the BTC ETF issuers have had to dump some coins from their respective funds. BlackRock sold just over $111 million BTC today following the $220 million outflows that its ETF recorded yesterday.