BTC Price Nears $110K as U.S. Tariff Delay Boosts Market Sentiment

Bitcoin has regained momentum, with price recovery to $110,000 after the U.S. postponed sweeping 50% tariffs on the European Union. The tariffs were initially introduced by Donald Trump late last week. Trump stated that EU Commission President Ursula von der Leyen requested the delay until July 9 to allow for continued negotiations.

The market is becoming accustomed to economic whiplash under the new U.S. administration. Just days ago, Bitcoin dropped 4% on sudden news — now, it’s back in rally mode and aiming once again for its all-time high.

Despite ongoing macroeconomic and political turbulence, the crypto market sentiment displays signs of resilience:

• Fear & Greed Index has edged down to 69, still signaling overall investor confidence;
• Bitcoin’s dominance stands at 63.3%, reinforcing its lead over altcoins;
• Altseason Index on 28, market conditions continue to favor Bitcoin.

While the market experienced heightened price swings, liquidation levels stay contained: 

• In the past 24 hours, total trader losses reached just over $207 million, with shorts making up $98 million of that.
• Illiquid altcoins accounted for $33 million in forced liquidations — often due to thin order books.
• Ethereum saw $48 million in liquidations, while Bitcoin followed closely with $41 million.

BTC Chart Check — Trend Intact

Bitcoin price has climbed back above $109,000 after rebounding off a diagonal trendline, with the 200-period exponential moving average (EMA) on the 1-hour chart offering key intraday support. This structure signals short-term strength and bullish intent. That said, traders should remain cautious. A potential bearish divergence on the weekly timeframe — which tends to carry far more technical weight — continues to shadow the rally.

Crypto analyst Dr J Rould highlights a potential bullish outlook for Bitcoin. He suggests that if the asset maintains its breakout above diagonal resistance through at least June 8, it could rise to $120,000 — a level he identifies as the next resistance zone and a key confluence point of long-term trendlines.

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On the other hand, Crypto analyst and trader CryptoBullet has flagged a possible weekly bearish divergence that mirrors Bitcoin’s 2021 cycle — where the asset formed two peaks near $64,000 before plunging to $20,000. Applying a similar model to the present, he suggests Bitcoin could revisit the $50,000 level if the pattern plays out. Still, he makes it clear that this is not his primary forecast at this time.

Bitcoin ETFs Stay in the Green

Despite outflows from several funds, the week ended positively for U.S. spot Bitcoin ETFs. On May 23, the segment recorded $211.7 million in net inflows. BlackRock’s IBIT stood out, pulling in $430.8 million — far outweighing redemptions elsewhere. Over the full week, total net flows into Bitcoin ETFs reached roughly $2.75 billion, underlining sustained institutional interest amid mixed macro conditions.

Following the U.S. tariff war announcement — and its delay — investor attention has shifted to the U.S. Dollar Index (DXY), which continues to weaken. Macro analyst Kim notes that in this environment, investors are increasingly willing to embrace risk in pursuit of higher returns. He emphasizes that current sentiment is steady and the market is far from showing any panic behavior.

So, the drop in DXY = less fear, аnd Bitcoin thrives in risk-on conditions. Meanwhile, rising yields signal that investors are demanding higher returns – not just safety. In panicked environments, people are willing to accept near-zero yield just to preserve capital.

Yield rates on U.S. government bonds are climbing again. The 10-year Treasury now yields over 4.5% annually, a threshold not seen since mid-2023 and — notably — in the lead-up to the 2008 financial collapse. Historically, such yield spikes often signal falling demand, as investors weigh inflation risks, economic instability, and the growing appeal of higher-yield, higher-risk assets like stocks or digital assets.

Read on: What Are Altcoins and How Do They Differ from Bitcoin?