Bitcoin traded just under $85,000 on Monday, inching upwards as a combination of easing trade tensions and expectations of potential Federal Reserve policy changes sparked renewed optimism in both traditional and digital asset markets.
The world’s largest cryptocurrency gained 1.6% in the past 24 hours, holding steady just below the crucial $85K level. Ethereum (ETH) also saw a solid 2.7% increase, reaching $1,630. The CoinDesk 20 Index, tracking the top 20 digital assets, saw a 1.2% rise, led by strong performances from Solana (SOL) and Avalanche (AVAX).
U.S. equities followed suit, with the Nasdaq rising 0.6% and the S&P 500 gaining 0.8%. MicroStrategy (MSTR) and Marathon Digital Holdings (MARA) led the charge among crypto-adjacent stocks, both up 3%.
Waller Signals Fed Rate Cuts if Tariffs Return
Federal Reserve Governor Christopher Waller’s remarks on potential rate cuts further boosted investor sentiment. Waller suggested that a resurgence of tariffs under the Trump administration could harm the economy and prompt more aggressive rate reductions.
“The impact on employment and output could last longer than expected,” said Waller in a speech. “If economic conditions worsen significantly, I would favor cutting rates sooner and more dramatically.”
Trade Truce Hopes Increase Market Confidence
Markets were further buoyed by the European Commission’s decision to delay retaliatory tariffs on U.S. goods until July 14, giving more room for ongoing trade discussions. Polymarket, a blockchain-based prediction platform, raised the probability of a U.S.-EU trade deal to 65%, after reports that President Trump believes a breakthrough is imminent.
Bitcoin Fundamentals Support Price Growth
Bitcoin’s recent relief rally around the $85,000 level coincides with strengthening network fundamentals, according to SwissBlock Technologies. The firm noted a steady influx of new participants and improving liquidity metrics since March, indicating a foundation for sustained growth.
“Liquidity is stabilizing, and key resistance levels are being absorbed, not rejected,” SwissBlock analysts reported. “This structural support gives us confidence that Bitcoin could break past $85,000 and continue upward.”
With both macroeconomic signals and on-chain data supporting bullish momentum, traders are watching for a decisive move above the $85K threshold to signal the next leg of the rally.
