Crypto Markets Brace for Fed, Earnings & New Regulations
Could a handshake between Trump and the EU really shift global markets? Or is it just the calm before a storm of volatility? You could say investors were caught off guard this week as geopolitical tensions gave way to temporary relief, sending global equities and crypto markets upward.
But beneath the surface, another critical week lies ahead, with high-stakes central bank moves, major earnings reports, and economic data that could send shockwaves through portfolios.
From surprise diplomacy to surging Bitcoin prices on the crypto markets and a looming Fed announcement, markets are performing the balancing act between optimism and caution. To position yourself for the next big opportunity, here are some things you should keep a keen eye on.
US-EU Trade Truce: Tariff Relief Sparks Risk-On Rally
Global markets opened the week on stronger footing after a surprise U.S.–EU tariff deal was reached over the weekend. The agreement prevents new U.S. auto tariffs and reduces the planned import tax on European goods from 30% to 15%. This can be perceived as a good sign and a step away from a full-blown trade war.
Having said that, European leaders praised the truce, although some, such as French trade ministers, voiced their worry that the agreement is still unfair. Nevertheless, the euro recovered to about $1.177, and U.S. futures increased marginally overall, with Dow futures up 0.1%, Nasdaq 100 futures up 0.4%, and S&P 500 futures up 0.2%.
Quick Hits:
- U.S.–EU trade deal slashes threatened tariffs from 30% to 15%
- European leaders cautiously optimistic, euro rises
- U.S. stock futures climb as trade tensions ease
Trump’s Deal Style Reemerges, and Markets Are Watching
Markets are once again adjusting to Donald Trump’s trademark style: high-stakes confrontation followed by a sudden diplomatic pivot. Analysts dubbed the U.S.–EU agreement a showcase of “the art of the deal”, where bold threats are followed by a quick compromise, often on favorable terms.
This strategy has revived discussions about what a second Trump term could mean for global markets. As seen with the recent EU negotiations, traders may begin pricing in recurring trade drama and resolution cycles, especially in sectors like autos, defense, and industrials.
Quick Hits:
- Trump strikes last-minute trade agreement with the EU
- Analysts call it strategic brinkmanship, not chaos
- Markets begin adjusting to potential second-term trade dynamics
Crypto Markets React: Bitcoin Broke $119K & Fell to 117K, Altcoins Rally
Bitcoin surged to $119K, rising 1.1% on Monday as traders welcomed reduced trade friction and speculated ahead of a key U.S. crypto policy report due July 30.
Similarly, other cryptocurrencies outperformed: Ethereum rose over 4% to roughly $3,924, its highest since December 2024. XRP, Solana, and Cardano each rose 2–3.5%, while meme tokens experienced similar gains. One could say it is a good week for the crypto markets.
Investors now await the Federal Reserve’s meeting and cryptocurrency policy report, both due this week. Markets expect interest rates to remain at 4.25–4.50%, but the tone on rate cuts and digital asset regulation will be pivotal. The policy report is expected to clarify the U.S. strategy on Bitcoin reserves, stablecoins, and broader crypto frameworks. This could be seen as a potential trigger for renewed institutional interest.
Quick Hits:
- Bitcoin hit ~$119 on trade optimism, then fell to $117K during the day
- Altcoins outpace Bitcoin gains
- Eyes on Fed commentary and July 30th crypto policy report
Oil Rallies as Trade Deal Boosts Demand Outlook
Oil prices inched higher Monday, lifting off a three‑week low as easing U.S.–EU trade tensions injected optimism back into the energy market. Brent futures rose about 0.3% to $68.66, while WTI edged up similarly to $65.36.
This move followed Sunday’s U.S.–EU framework deal, which imposed a reduced 15% tariff on EU imports, down from the threatened 30%, significantly reducing fears of a global trade-induced demand drop.
In addition, market sentiment gained further support from a larger-than-expected 3.2‑million-barrel draw in U.S. crude stocks, signaling stronger refinery demand despite headlines suggesting supply increases from Venezuela. Meanwhile, analysts now await an OPEC+ review and likely September supply hike of about 548,000 barrels per day; part of the tapering reversal of prior voluntary cuts.
Quick Hits:
- Trade optimism from U.S.–EU framework deal lifts demand expectations
- U.S. crude inventory draws exceed forecasts, supporting price momentum
- OPEC+ supply outlook under scrutiny: September output hike expected
- Mixed signals remain from potential Venezuelan production resumption
The Week Ahead: Earnings, Trade Talks, Flash PMIs & More
This week isn’t just busy: it’s loaded with catalysts. Wednesday’s Fed meeting is the centerpiece, with rate decisions and Powell’s press conference likely to steer bond yields and equity direction. While markets expect no change in rates, any shift in tone will be dissected for future cuts or hikes.
Depending on whether job growth slows down or surprises, Friday’s non-farm payrolls report could either support or contradict the Fed’s stance. The market is poised for a significant shift when you factor in ISM manufacturing data, Apple and Amazon’s earnings, and additional possible headlines from US-EU trade negotiations.
On the watchlist:
- Fed Meeting (Wed): Rate pause expected, tone will drive direction.
- Jobs Report (Fri): Could alter Fed path if data surprises.
- ISM Manufacturing: Key signal for industrial recovery.
- Big Tech Earnings: Apple, Amazon could drive Nasdaq moves.
- US-EU Talks Continue: Watch for further trade signals.
The Bottom Line: Position for the Pivot
Markets may be breathing easier after the Trump-von der Leyen handshake, but this is no time to get complacent. From central bank decisions to crypto markets and policy to corporate earnings, this week has all the ingredients to flip sentiment on a dime.
At BullRush, we help traders sharpen their edge during weeks like this. Whether you’re competing in our paper trading challenges, testing strategies in the Profit Sprint, or preparing for live prop account opportunities, now’s the time to act. Stay ahead of the curve, outsmart the noise, and earn while you learn.
Join BullRush trading competitions to see if your instincts match the market’s next move. When the data hits and the markets react, will you be ready?
