Federal Reserve Members Eye July Rate Cuts Amid Tariff Talks Bitcoin Holds at $105,900

Recent economic indicators suggest a strategic shift in the global financial landscape, with a focus on potential interest rate cuts by the Federal Reserve. The decline in oil prices has eased inflation concerns, and major tariff agreements expected around July 4 are creating an environment conducive to rate reductions. This scenario raises questions about how Bitcoin (BTC) and Ethereum (ETH) prices will react to these economic shifts.

Three Federal Reserve members have expressed a preference for rate cuts in July, while two others believe it is too soon. The impact of tariffs on inflation will be a decisive factor for these rate cuts. The scope of tariff deals anticipated around July 4 will be instrumental in guiding the Fed’s actions. President Trump recently commented on this issue, suggesting that tariffs imposed during June, July, or August could have significant inflationary effects. In the absence of such impacts, an early transition to rate cuts might be feasible. While interest rates currently stand high, there is a substantial margin for reduction compared to historically low-rate periods.

However, recent reports indicate that the European Union might be planning retaliatory tariffs to strengthen its stance. German Chancellor Angela Merkel’s assurance of a deal by September, alongside extending the July 9 deadline, adds tension. Trump may escalate the issue, declaring no deal at all. Upcoming PCE data on Friday and tariff news leading up to the July 4 Independence Day will be crucial. Currently, BTC stands at $105,900.

Institutional demand for Bitcoin remains robust, with spot BTC ETFs surpassing $1 trillion in cumulative volume in less than 18 months. Bitcoin ETFs have ignited more excitement than Gold’s ETF debut, and continued growth could rival the largest centralized exchanges in terms of BTC holdings. DaanCrypto shared insights on Bitcoin’s price performance, noting lackluster results during the US and EU sessions, while the Asian session remained relatively flat. Momentum has stalled overall across increased timeframes, with no clear direction emerging in the past month. Significant ETF inflows have been noted, yet general selling continues during US sessions, indicating substantial supply within the current price range. Ultimately, the price is expected to exceed this level, but it may take time.

For the ETH price, an analyst emphasized the importance of maintaining the $2,450 support level, predicting a potential fall back to the $2,100-$2,150 demand zone in the event of significant decline. However, given the positive reception of ETF inflows, expectations are relatively optimistic. If the momentum sustains, ETH might quickly rally to the $2,750-$3,000 range, reaching pre-war levels, contingent on continued positive market sentiment.