- Bitcoin remains steady above $108,000 amid relief from geopolitical tensions and renewed investor interest.
- Traders await macroeconomic data and Powell’s remarks at the ECB forum to gauge the Fed’s next interest rate moves.
- Crypto fundamentals remain strong, with possible rate cut signals potentially boosting prices further.
- Market sentiment is optimistic, but volatility looms with key global developments, including tariff deadlines and dollar trends.
Bitcoin continued its upward momentum over the weekend, stabilizing above the $108,000 mark as investors breathed a sigh of relief following a tentative Iran-Israel ceasefire. Ether also showed resilience, briefly climbing above $2,500, reflecting broader optimism in the crypto markets.
According to The Block’s price page, Bitcoin rose 1% to $108,423, while Ether surged 2.8% to $2,499, erasing losses experienced during geopolitical tensions. The recovery highlights the market’s sensitivity to both political and economic developments.
Also Read : Bitcoin Price Bounces To $110,000, But Is This Just A Bull Trap In Disguise? Here’s What Analysts Say
All Eyes on Powell and Economic Data
This week, traders are turning their attention to a slate of critical macroeconomic events, with the spotlight on Federal Reserve Chair Jerome Powell’s upcoming appearance at the European Central Bank (ECB) forum on Tuesday. Powell will be joined by central bank officials from the UK, South Korea, and Japan in what could provide key insights into future monetary policy.
While Powell recently signaled that the Fed is not rushing to cut rates, political pressure is mounting. Former U.S. President Donald Trump accused Powell of keeping interest rates “artificially high” during weekend remarks, adding a layer of tension to the economic discourse.
Jobs Data, Tariff Talks, and Rate Cut Hopes
Economists and market analysts highlight that labor market data set for release this week will be pivotal. Reports include May’s Job Openings and Labor Turnover Survey (JOLTS) and June’s nonfarm payrolls alongside unemployment figures. According to Peter Chung, Head of Research at Presto Research, any signs of labor market weakness could strengthen expectations of rate cuts.
“If these data show weakness, the expectation of rate cuts could strengthen, driving risk asset prices, including crypto, higher,” Chung noted.
Crypto Outlook: Optimism with Caution
As tariff negotiations continue ahead of the July 8–9 deadline, traders are also watching U.S. dollar movements, which could impact risk appetite across the board. Vincent Liu, CIO at Kronos Research, noted that while crypto momentum is building, conviction could be tested in the face of unexpected macro developments.
With the Bitcoin Fear & Greed Index currently at 66, the sentiment is “elevated,” suggesting optimism, but also susceptibility to sharp corrections should policy winds shift.
