Bitcoin Surges 3.1% to $108,600 on Trade Deal Optimism and Rate Cut Bets

Bitcoin's price surged above $108,000 today, driven by optimism surrounding U.S. trade deals and expectations of a rate cut by the Federal Reserve. The cryptocurrency's price movement was influenced by a shift in market sentiment, which initially pushed BTC into a trading range between $107,194 and $108,489. However, the market later reversed, with BTC sliding over 2.5% to below $106,000. Despite this volatility, the market sentiment shifted again, pushing BTC price up 3.1% to trade at $108,600.

The recent price action indicates that Bitcoin is consolidating just below major resistance levels. Analysts highlight $110.5K as a key resistance level, with bulls needing a firm breakout above $110K to confirm momentum toward $112K–$115K. Technical analysis shows BTC testing resistance between $108K–$110K, suggesting that a breakout above $110K could signal further bullish momentum.

The optimism surrounding Bitcoin's price movement is also fueled by the potential for a rate cut by the Federal Reserve. Despite the Fed's hesitation to signal rate cuts, traders are eyeing the possibility of a rate cut, which could further boost Bitcoin's price. The recent price action indicates that Bitcoin is nearing $108K, marking a full recovery from last week's volatility.

Risk appetite was encouraged by Canada rescinding a digital service tax on U.S. companies and offering to restart trade deals with Washington. Ottawa is eyeing a July 21 deadline to reach a trade deal. The move came as Japan also signaled continued efforts to reach a U.S. trade deal, while a recent U.S.-UK trade agreement took effect on Monday. Markets are hoping that the U.S. will sign trade deals with more major economies before a July 9 deadline for President Donald Trump’s steep tariffs to take effect.

Bitcoin was trading up 3.6% for June, as a mix of U.S. policy optimism, trade progress, and rate cut bets helped boost risk-driven flows into the crypto. Bitcoin had also hit a record high earlier in the month. Bitcoin’s biggest point of support was the progress of a stablecoin regulation bill through Congress, which highlighted President Donald Trump’s commitment to doling out more crypto-friendly regulation. Signs of government adoption continued with mortgage giants Freddie Mac and Fannie Mae signaling that they will consider using crypto as collateral in home loans.

In addition to signs of institutional adoption, risk appetite was boosted over the past week by a ceasefire between Israel and Iran, which appeared to be holding. Broader crypto prices rose on Monday, also taking support from increased speculation over interest rate cuts by the Fed. Bets that the Fed will cut rates by as soon as September were seen growing over the past week. But most altcoins severely lagged Bitcoin in June, as the world’s largest crypto continued to be the locus of investor and regulatory interest. Corporate buying of Bitcoin also picked up in June, helping the crypto outpace broader markets.

World no.2 crypto Ether rose 2.8% on Monday, but was down 1% in June. XRP rose 0.3% and was up 0.9% for the month. Solana was trading down 3.4% in June, while Cardano was by far the worst performer among major altcoins, and was trading down nearly 17%. Among memecoins, $TRUMP was down nearly 20% in June, while Dogecoin was down 13%.

The cryptocurrency market is teeming with a renewed sense of optimism as Bitcoin looks to break above $108,000. The recent price action indicates that Bitcoin is showcasing strong resilience, with whale inflows to exchanges sharply declining, signaling potential bullish sentiment. The current price movement suggests that Bitcoin is consolidating just below major resistance levels, with analysts highlighting $110.5K as a key resistance level. A firm breakout above $110K could confirm momentum toward $112K–$115K, further boosting Bitcoin's price.