The BTC Price Movement
The BTC price has already moved towards $94,760, echoing the anticipated developments expected this week. Bessent previously informed us that a tariff agreement with a major economy would be finalized by the end of this week. FT just released the details of this prospective event.
U.S. and U.K. Trade Pact
Despite Trump’s seemingly uncompromising stance, his administration continues negotiations with multiple countries. Today, it was officially stated that the process is ongoing with 17 out of 18 major trade partners. Now, FT reports that a trade agreement between the U.K. and the U.S. is imminent.
Officials from London and Washington indicate that the deal, designed to eliminate tariffs, is nearing completion. The agreement aims to ease conditions with lower tariff quotas and is expected to be signed before the week ends. Trump’s steel tariff of 25% imposed in February and March, which also included automobiles, is a significant issue the U.K. seeks to resolve.
U.S. Treasury Secretary Scott Bessent, in today’s congressional testimony, suggested that the agreement could be finalized as early as this week, without specifying the involved country. With today’s announcement of a free trade agreement between India and the U.K., the U.K. could emerge as a frontrunner if the issues with the U.S. are also resolved.
Significance for Cryptocurrencies
To address the prevalent uncertainty, Trump needs to demonstrate a willingness to reach a consensus. The only way to achieve this is by signing a concrete agreement. If the U.K. or countries like India and Japan sign trade agreements in the coming days, uncertainty will diminish, and the conditions under which the U.S. will agree will become clearer.
EU officials and various negotiators have previously commented on the U.S.’s unwillingness to compromise. Breaking this negativity and preventing the U.S. from facing isolated opposition globally requires a decisive tariff agreement. Such an environment would undoubtedly be supportive for cryptocurrencies.
BTC is already nearing $95,000. Inflation has significantly decreased, employment is weakening, and PMI data is trending negatively. Under these conditions, removing tariffs would alleviate the Fed’s concerns about further inflation increases through rate cuts. This, in turn, provides another reason for an uptick in crypto. Remember, crypto tends to price in future occurrences early and reacts swiftly.