Bitcoin approached $85,000, fueled by the European Union's decision to postpone retaliatory tariffs on U.S. goods and Federal Reserve Governor Christopher Waller's suggestion of potential rate cuts if tariffs resume. The biggest crypto was up 1.6% in the past day, changing hands just under $85,000. Ether (ETH) gained, climbing 2.7% to $1,630 in the same time frame.
The broad-market CoinDesk 20 Index tracks the top 20 cryptocurrencies by market capitalization. Recently, it increased by 1.2%, with stablecoins, memecoins and exchange coins excluded. SOL and AVAX were the two biggest gainers among the CoinDesk 20 Index members, continuing a broader trend of impressive performance among altcoins.
Bitcoin's recent relief rally, following last week's tariff concerns, encountered resistance around the $85,000 level. Late last month, the European Commission announced that they would postpone retaliatory tariffs on U.S. goods totaling €21 billion until July 14. This announcement came as a welcome relief and relief valve, adding to the positive market sentiment.
Fed governor Christopher Waller’s comments on an inclination towards rate cuts should tariffs be revived anew, gave the market even more to cheer about.
"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." - Christopher Waller
Bitcoin just experienced strengthening network fundamentals and stabilizing liquidity, according to analyst at Swissblock.
"Since March, we’ve seen a consistent inflow of new participants," - Swissblock analysts
"Liquidity is stabilizing, no more erratic swings from early 2025." - Swissblock analysts
"Once the liquidity gauge holds above the 50 line, short-term price action tends to follow with strength," - Swissblock analysts
