Bitcoin Nears $85,000 as Fed’s Waller Signals Rate Cuts on Tariff Shock Fears

Bitcoin had a small upmove to the $85,000 range as improving market sentiment and trade negotiations eased investor concerns. The CoinDesk 20 Index was up 1.2% driven higher by SOL and AVAX.Fed governor Christopher Waller indicated potential rate cuts if Trump tariffs return, and the EU delayed retaliation tariffs on U.S. goods.

Swissblock analysts mentioned that Bitcoin is strengthening its network fundamentals and stabilizing liquidity, making many bullish on potential long-term sustained growth.Bitcoin (BTC) gently pushed a little higher on Monday as the broader market adjusted positively to trade news. The largest cryptocurrency was up 1.6% over the last 24 hours and trading just under $85,000.

Ether (ETH) was also higher in the same time period, gaining 2.7% to $1,630. The broad market CoinDesk 20 Index — which consists of the top 20 cryptocurrencies by market capitalization excluding stablecoins, memecoins, and exchange coins — finished ahead by 1.2% with SOL and AVAX leading gains.

The stock market is continuing its up trend after a few wild weeks with the Nasdaq finishing up 0.6% and S&P 500 up 0.8%. Cryptocurrency sources led among the crypto stocks with a nominal 3% up move.

The modest rally occurred alongside Federal Reserve Governor Christopher Waller's signals that a reinstatement of the punitive Trump tariffs would require considerable "bad news" interest rate cuts. "Tariff [effects on output] and employment could be longer-lasting and it is a consideration for the appropriate monetary policy stance," said Waller in a speech."

If there is a voluminous slowdown, and it is threatening to lead to a recession, then I would expect to lean towards favoring a sooner cut to the FOMC policy rate, as well as a greater cut than I had been leaning towards before." To further alleviate easing fears, the European Commission (the executive branch of the EU) announced that it will withhold retaliatory tariffs on U.S. goods up to €21 billion until July 14, "to allow time and space for negotiations."

Since U.S. President Donald Trump recently said there will be a deal coming, the chance the U.S. and EU will reach a trade agreement that would eliminate tariffs rose to 65% on the blockchain prediction-market Polymarket.

Bitcoin's relief rally from last week's tariff turmoil hit the wall at the $85,000 resistance, but the network's improving fundamentals are stirring renewed hope of a breakout according to crypto analytics firm SwissBlock Technologies.

"Since March, we are seeing a consistent inflow of new participants," the Swissblock analysts stated in a Telegram broadcast. "Liquidity is stabilizing, and we are not seeing the erratic swings from early 2025."

"Once the liquidity measure holds above the 50 line, price action tends tend to follow with strength," the Swissblock analysts said. "With net growth working together, now key levels are being revisited as opposed to just being accumulated.""This is the type of structural support that creates sustainable rallies," they concluded.

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