Bitcoin reached $122,000. Oil prices are falling amid potential tariffs against Russian oil

At the end of Monday, the Dow Jones Index (US30) rose by 0.20%. The S&P 500 Index (US500) added 0.14%. The Nasdaq Technology Index (US100) closed higher by 0.33%. 

The US stocks closed slightly higher on Monday as investors weighed President Trump’s new tariff threats against optimism about upcoming earnings and inflation data. Trump announced plans to impose 30% tariffs on goods from the EU and Mexico starting August 1, but hopes for continued negotiations helped ease investor concerns. Markets are also preparing for a wave of second-quarter earnings reports, with major banks such as JPMorgan Chase and Wells Fargo set to report on Tuesday. At the same time, investors are awaiting the June Consumer Price Index report, which may show how previously imposed tariffs are affecting inflation and shape expectations for the Fed’s next move. 

On Monday, Bitcoin (BTC/USD) jumped more than 2% and exceeded the $122,000 mark, setting a new all-time high and strengthening its position among the largest assets by market capitalization, which is now estimated at $2.4 trillion. The latest rally is fueled by growing institutional demand, especially through spot exchange-traded funds, as well as favorable US political prospects and favorable global macroeconomic conditions. The bullish momentum is reinforced by expectations of further rate cuts by the US Federal Reserve, as markets increasingly lean toward a more accommodative monetary policy. Trump continues to exert political pressure on Fed Chairman Jerome Powell, demanding lower borrowing costs in an attempt to stimulate growth.

European stock markets traded without a clear trend yesterday. The German DAX (DE40) fell by 0.39%, the French CAC 40 (FR40) closed down 0.27%, the Spanish IBEX35 (ES35) rose by 0.19% (up +0.33% for the week), and the British FTSE 100 (UK100) closed up 0.64%. The Frankfurt DAX Index continued to decline after President Donald Trump threatened to impose 30% tariffs on goods from the EU, which will take effect on August 1. Nevertheless, markets remained hopeful that the measures would be softened as part of ongoing trade discussions. At today’s meeting, EU ministers agreed to prioritize negotiations with Washington in an attempt to avoid tariffs. If the negotiations fail, the EU is preparing retaliatory tariffs worth €72 billion. The European automotive sector was hit hard: VW, BMW, and Mercedes lost up to 2.5%, while Volvo fell by 5% after warning of profitability issues related to tariffs on electric vehicles. On a brighter note, shares in defense companies such as Thales rose after Macron approved a €6.5 billion military spending plan.

WTI oil prices fell by 2.1% to below $67 per barrel on Monday after President Trump failed to announce new sanctions against Russian oil, disappointing markets that had expected tougher action. Although Trump warned of the possible imposition of 100% secondary tariffs on Russia if a truce was not reached within 50 days, the lack of immediate action put pressure on prices. Hedge funds responded by reducing their bullish positions at the fastest pace since February. However, Chinese trade data provided some support: crude oil imports rose and purchases of Iranian oil increased in June, indicating steady demand in the near term.

Natural gas prices (XNG/USD) in the US rose to a weekly high, exceeding $3.4 per million barrels, thanks to growth in LNG exports and expectations of hotter-than-usual weather, which is expected to increase demand for gas at the end of July. Gas flows at the eight major LNG export plants in the US averaged 15.8 billion cubic feet per day (bcfd) in July, as several facilities resumed operations after maintenance and downtime. 

Asian markets were mostly higher on Monday. Japan’s Nikkei 225 (JP225) fell by 0.28%, China’s FTSE China A50 (CHA50) rose by 0.05%, Hong Kong’s Hang Seng (HK50) added 0.26%, and Australia’s ASX 200 (AU200) showed a negative result of 0.11%.

Hong Kong stocks fell at the opening of the trading session, interrupting a three-session winning streak. Traders reacted to China’s second-quarter GDP data, which showed economic growth of 5.2% y/y, the slowest pace in three quarters, although slightly above the expectations of 5.1%. Meanwhile, China’s statistics agency noted continuing external uncertainty and warned that domestic demand remains weak.

The Australian dollar rose to $0.654 on Tuesday after a notable decline in the previous session. Domestically, sentiment improved thanks to positive economic data: the Westpac-Melbourne Institute Consumer Sentiment Index rose 0.6% month-on-month to 93.1 in July 2025. This was the third consecutive monthly increase, signaling a modest but encouraging improvement in consumer sentiment.