As anticipated, the best news for the weekend emerged from the US-EU trade agreement, leading to significant movements in the cryptocurrency market. Bitcoin 
$77,196 tested the $120 threshold again, with Ethereum 
$2,421 aiming for $4,000. The agreement, deemed favorable by cryptocurrency investors, resulted in the EU conceding substantial terms. During the article’s preparation, former President Trump challenged Putin. This is a summary of the recent updates.
Trump and Putin
In 2022, Putin’s attack on neighboring Ukraine adversely affected cryptocurrencies. Despite the ongoing heavy toll of the war, peace remains elusive. Recently, Trump gave Putin a 50-day ultimatum to resolve matters. He warned of secondary sanctions targeting Russia’s oil sales. In a recent statement, Trump intensified his rhetoric.
“I am very disappointed with Russia’s President Putin, shortening the 50 days I initially gave him.”
The EU is shifting its energy dependency towards the US by increasing LNG purchases. Russia, however, is proposing tough conditions for any agreements. Although Trump made initial progress upon entering office, he later expressed frustration with Putin’s actions, impacting diplomatic relations.
The concern over secondary sanctions is creating new risks for markets, potentially affecting oil prices, as remembered from past Iranian attacks that had unfavorable outcomes. The August implementation of these sanctions remains crucial in predicting future market scenarios.
Cryptocurrencies
The dollar gained value against G10 currencies, helped by the trade deal, causing Treasury Bonds to rise. Expect extensive US data releases this week, alongside notable interest rate decisions. Although the Fed is expected to cut rates in September, the probability is a modest 60% with months to go. Meanwhile, the US-China tariffs are halted for 90 days, offering temporary relief regarding trade concerns with the EU and China in August.
Letters concerning tariffs will be sent to various countries, with implementation scheduled for August. Major US companies like Boeing, Visa, and PayPal are set to release earnings reports, adding volatility to the stock markets.
The JOLTS report, due soon after US markets open, updates the employment scenario. Concurrently, the CB Consumer Confidence Index will provide insights into the tariffs’ impact on consumer sentiment. A figure surpassing expectations could bolster market confidence.
