Bitcoin tops US$123k while investors weigh Trump’s tariff delay, earnings, and US inflation data
Bitcoin surpassed US$123,000 Monday as attention turned to “crypto week” in Washington, with proposed legislation set to shape the regulatory outlook for digital assets.
According to BNN Bloomberg, the cryptocurrency climbed over 3 percent to US$123,153.22 before easing to US$119,750.86—still up more than 27 percent for the year.
The rally coincided with the start of US congressional debates on several bills, including the Genius Act, which would set national rules for stablecoins, the Clarity Act, and the Anti-CBDC Surveillance State Act.
As reported by BNN Bloomberg, US Republicans have labelled this “crypto week” and are pushing for frameworks to strengthen the industry’s domestic footing.
According to eToro analyst Simon Peters, “developments around these pieces of crypto legislation could provide a further tailwind to the current rally.”
IG market analyst Tony Sycamore noted bitcoin was “riding a number of tailwinds at the moment,” including institutional demand and political support from US President Donald Trump.
Trump, who has called himself the “crypto president,” has been linked to a number of digital asset projects, including the launch of his own meme coin in January.
While that token fell 3.4 percent Monday to US$9.45, according to CoinMarketCap, the broader sector continued to post gains. Ether reached US$3,081.94 and XRP rose 2.7 percent.
The total crypto market cap climbed to roughly US$3.8tn.
North American equity markets also posted gains.
The S&P/TSX composite index closed at a record 27,198.85, rising 175.60 points, as per BNN Bloomberg.
In the US, the Nasdaq composite added 54.80 points to 20,640.33 to reach a new high, while the Dow Jones Industrial Average rose 88.14 points to 44,459.65.
The S&P 500 inched up 8.81 points to 6,268.56 and is now within 0.2 percent of last Thursday’s all-time high.
Market sentiment was supported by Trump’s weekend announcement of a delay to 30 percent tariffs on imports from Mexico and the European Union, now slated to take effect on August 1.
The same deadline applies to tax adjustments on imports from countries including Japan and South Korea.
According to BNN Bloomberg, this timeline gives room for trade deals that could soften tariff impacts and avoid further disruption to global trade.
Ulrike Hoffmann-Burchardi, global head of equities at UBS Global Wealth Management, said the administration is likely using the tariff escalation to “maximize its negotiating leverage.”
She added that a de-escalation is expected if bond and stock market volatility rises.
Brian Jacobsen, chief economist at Annex Wealth Management, said the market “might not like the tariff talk,” but it's also not reacting with panic.
Still, BNN Bloomberg reported that full implementation of Trump’s tariff plans would elevate recession risk and strain the US government’s debt ratio, particularly after recent tax cuts added to its deficit.
Looking ahead, multiple events could affect markets this week.
According to BNN Bloomberg, Tuesday brings the latest US inflation data, expected to show a rise to 2.6 percent in June from 2.4 percent in May.
JPMorgan Chase and other major banks will kick off earnings season the same day, with Johnson & Johnson and PepsiCo scheduled to report later in the week.
Among Monday’s corporate updates, Fastenal posted stronger-than-expected profit, lifting its stock 4.2 percent, though it cited continued sluggish market conditions.
Shares of Kenvue rose 2.2 percent after announcing that CEO Thibaut Mongon would step down.
Board chair Larry Merlo said the company is reviewing “ways to simplify the company’s portfolio and how it operates.”
Waters shares slumped 13.8 percent after confirming a US$17.5bn merger with Becton, Dickinson and Co.’s biosciences and diagnostics unit.
In the bond market, the 10-year US Treasury yield edged down to 4.42 percent from 4.43 percent late Friday.
Globally, equity performance was mixed.
According to BNN Bloomberg, Germany’s DAX dropped 0.4 percent, France’s CAC 40 fell 0.3 percent, while South Korea’s and Hong Kong’s indexes gained 0.8 percent and 0.3 percent, respectively.
Chinese shares also rose as export growth accelerated, reportedly driven by pre-deadline orders ahead of the August 1 trade talks.
In currency and commodities, the Canadian dollar traded at 73.03 cents US, slightly lower than Friday’s 73.08 cents US.
August crude oil declined US$1.47 to US$66.98 per barrel, while August gold dropped US$4.90 to US$3,359.10 an ounce.
