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For a deeper dive, see our full XRP forecast here.
Bitcoin Gets Tariff Relief
While XRP faces legal turbulence, Bitcoin’s (BTC) momentum is influenced by trade developments. On Sunday, May 25, President Trump announced a delay to the 50% tariff on EU goods, stating:
“I received a call today from Ursula von der Leyen, President of the European Commission, requesting an extension on the June 1st deadline on the 50% tariff with respect to Trade and the European Union. I agreed to the extension – July 9, 2025 – It was my privilege to do so. The Commission President said that talks will begin rapidly.”
BTC surged 1.65% within an hour of the announcement, climbing from $107,419 to $109,315 before easing back. Sunday’s price action reflected BTC’s sensitivity to geopolitical events and their implications for inflation and Fed policy.
State-Level Momentum Behind the Bitcoin Act
While trade news drives short-term moves, US crypto legislation may influence BTC’s longer-term supply-demand dynamics. Senator Cynthia Lummis reintroduced the Bitcoin Act in 2025. The bill proposes the US government purchase one million BTC over five years, with a mandatory 20-year holding period.
Optimism about Congress passing the bill has contributed to BTC’s recent gains. State-level support is growing. Texas lawmakers recently approved a crypto strategic reserve bill, now awaiting Governor Gregg Abbott’s signature. Arizona and New Hampshire were the first to approve Strategic Bitcoin Reserve bills and several other states have proposed similar legislation.
BTC Price Outlook: Legislation and ETF Trends
BTC climbed 1.15% on May 25, extending Saturday’s 0.46% gain to close at $109,096. The near-term outlook depends on legislative developments, trade headlines, macroeconomic indicators, and ETF inflows.
Potential scenarios:
- Bearish Scenario: Renewed trade tensions, legislation setbacks, US recession fears, and ETF outflows could drag BTC below $100,000.
- Bullish Scenario: Easing trade frictions, positive economic data, Bitcoin Act progress, and ETF inflows could drive BTC above the record high of $112,912 to target $115,000.
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