Bitcoin (BTC) drifted ever so gently upwards Monday as the broader market adjusts favorably to trade-related news.
The largest cryptocurrency was up 1.6% in the last 24 hours and is now trading just shy of $85,000. Ether (ETH), meanwhile, rose 2.7% in the same period of time to $1,630. The broad-market CoinDesk 20 Index — consisting of the top 20 cryptocurrencies by market capitalization except for stablecoins, memecoins, and exchange coins — advanced 1.2%, led by gains in SOL and AVAX.
After a couple of wild weeks, the stock market also edged higher today, with the Nasdaq closing with a 0.6% gain and the S&P 500 rising 0.8%. Strategy (MSTR) and MARA Holdings (MARA) led among crypto stocks with roughly 3% gains.
The modest rally came as Federal Reserve Governor Christopher Waller signaled that a return of the original punitive Trump tariffs would trigger the need for sizable “bad news” rate cuts.
“[Tariff] effects on output and employment could be longer-lasting and an important factor in determining the appropriate stance of monetary policy,” said Waller 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 concerns were addressed by the European Commission, the executive arm of the EU, confirming they would hold off on retaliatory tariffs on U.S. goods worth €21 billion until July 14 to “allow space for negotiations.”
Odds that the U.S. and EU will reach a trade agreement to avoid tariffs rose to 65% on blockchain-based prediction market Polymarket after U.S. President Donald Trump reportedly stated that a deal was in the works.
Bitcoin Fundamentals Recovering
Bitcoin’s relief rally from last week’s tariff turmoil stalled out around the $85,000 resistance level, but the network’s improving fundamentals spur hopes for a 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, with no more erratic swings from early 2025.”
“Once the liquidity gauge holds above the 50 line, short-term price action tends to follow with strength,” they added. “With network growth aligning, key levels aren’t just being revisited; they’re being accumulated.”
“This is the kind of structural support that underpins sustainable rallies,” they concluded.
