Crypto Markets Rally on Trade Deal Hopes Ahead of Tariff Deadline

The cryptocurrency market saw a broad-based rally on Sunday, fueled by growing optimism around potential trade deals being finalized by the United States ahead of a critical July 9 tariff deadline. Bitcoin (BTC) led the charge, pushing past the $108,800 mark and briefly touching an intraday high of $109,076.98. This positive momentum reflects a classic risk-on sentiment shift, where assets like cryptocurrencies and equities benefit from a perceived reduction in global macroeconomic uncertainty. The comments from U.S. Treasury Secretary Scott Bessent, suggesting a flurry of trade agreements could be imminent, acted as a powerful catalyst. According to a report from Reuters, Bessent indicated that countries failing to cooperate could see tariffs revert to higher levels announced on April 2, creating a strong incentive for resolution. This news has temporarily eased fears of a trade war escalation, which previously saw Bitcoin plummet to $75,000 following the initial tariff announcements.

Bitcoin Price Analysis: Bulls Defend $107k Support

From a trading perspective, Bitcoin's price action reveals a constructive but cautious picture. The BTC/USDT pair registered a 24-hour gain of approximately 0.75%, trading around $108,814. The key battleground for traders is the range between the daily low of $107,837 and the high near $109,077. This tight consolidation above the $107,000 psychological support level is bullish. A sustained break above the $109,100 immediate resistance could open the door to a retest of the $110,000 milestone and beyond. However, trading volume on the BTC/USDT pair remains relatively low at just 1.84 BTC, suggesting that while sentiment is positive, conviction from large-scale buyers has yet to fully materialize. Traders should watch for a significant increase in volume to confirm the strength of any upward move. The correlation with U.S. equities, which have also reached record highs on the back of this "U.S. exceptionalism" narrative, remains a crucial factor. Any negative turn in the trade negotiations could swiftly reverse these gains, making the $107,800 level a critical support to watch.

Altcoin Surge: SOL, XRP, and AVAX Lead the Pack

While Bitcoin posted steady gains, several major altcoins outperformed, signaling a broader appetite for risk among crypto investors. Solana (SOL) was a standout performer, surging over 3.8% to trade at $152.35. The SOL/BTC pair also showed significant strength, rising 3.25% to 0.00140470 BTC, indicating that Solana is gaining ground against the market leader. Similarly, XRP climbed over 2.8% to $2.27, with traders eyeing a break of the daily high at $2.2880 as a key bullish signal. Ethereum (ETH) also showed resilience, gaining nearly 2% to trade around $2,547. The ETH/BTC pair rose 1.6%, suggesting that capital is beginning to rotate from Bitcoin into major altcoins. Perhaps the most telling indicator of renewed risk-taking is Avalanche (AVAX), which saw its AVAX/BTC pair rocket up by over 6.7%, demonstrating strong momentum and trader interest. Meme token Dogecoin (DOGE) also caught a bid, rising 3% and showing a 1.8% gain against Bitcoin, underscoring the market-wide positive sentiment. This broad outperformance by altcoins suggests traders are increasingly confident in the short-term stability of the market and are willing to move further out on the risk curve for potentially higher returns as the July 9 deadline approaches.