- Bitcoin gained 1.6% to reach just under $85,000 amid positive market reaction to trade news.
- Federal Reserve Governor Christopher Waller signaled potential rate cuts if Trump tariffs return and significantly impact the economy.
- Bitcoin’s network fundamentals show improvement with consistent participant inflow and stabilizing liquidity since March 2025.
Bitcoin edged higher Monday, approaching the $85,000 mark as markets responded favorably to developments in international trade relations. The largest cryptocurrency rose 1.6% over the past 24 hours, while Ether gained 2.7% to $1,630. The CoinDesk 20 Index, which tracks the top cryptocurrencies excluding stablecoins, memecoins, and exchange tokens, advanced 1.2% with SOL and AVAX leading the gains.
Traditional markets also showed modest improvement, with the Nasdaq closing up 0.6% and the S&P 500 rising 0.8%. Crypto-related stocks performed well, with Strategy (MSTR) and MARA Holdings (MARA) each gaining approximately 3%.
The market uplift came as Federal Reserve Governor Christopher Waller indicated that a return of Trump’s original tariffs would likely necessitate significant interest rate cuts. “[Tariff] effects on output and employment could be longer-lasting and an important factor in determining the appropriate stance of monetary policy,” Waller stated in a speech. “If the slowdown is significant and even threatens a recession, then I would expect to favor cutting the FOMC’s policy rate sooner, and to a greater extent than I had previously thought.”
Further easing trade concerns, the European Commission confirmed it would delay implementing retaliatory tariffs on U.S. goods worth €21 billion until July 14, allowing time for negotiations. The blockchain-based prediction market Polymarket now shows 65% odds of a U.S.-EU trade agreement after President Donald Trump reportedly mentioned a deal was in progress.
Bitcoin Fundamentals Show Improvement
While Bitcoin’s recovery rally stalled around the $85,000 resistance level, improving network fundamentals are generating optimism for a potential breakout, according to crypto analytics firm SwissBlock Technologies.
“Since March, we’ve seen a consistent inflow of new participants,” SwissBlock analysts noted in a Telegram broadcast. “Liquidity is stabilizing, no more erratic swings from early 2025.”
The analysts explained that Bitcoin’s market structure is strengthening: “Once the liquidity gauge holds above the 50 line, short-term price action tends to follow with strength. With network growth aligning, key levels aren’t just being revisited, they’re being accumulated.”
This improvement in fundamental metrics suggests stronger support for Bitcoin’s price. “This is the kind of structural support that underpins sustainable rallies,” the SwissBlock team concluded, pointing to a potentially more stable growth trajectory if current trends continue.
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