Bitcoin Gains As The Federal Reserve Leaves The Door Open To A July Rate Cut

Key points:

• Bitcoin holds Middle East ceasefire gains as $103,000 becomes the new area of interest for “buying the dip.”

• Institutional BTC inflows hold firm despite geopolitical uncertainty.

• Fed official Michelle Bowman says she would be open to a July interest-rate cut should data allow.

Bitcoin (BTC) held $105,000 into the June 24 Wall Street open as bullish BTC price tailwinds suddenly multiplied.

Analyst: Bitcoin “buy the dip” level now $103,000

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD preserving the majority of its 4.4% gains from the day prior.

Relief from the Middle East conflict in the form of a tentative ceasefire spurred a crypto and risk-asset rally, while oil extended losses.

For Bitcoin traders, the signs of a bull market recovery were everywhere.

“Strong rally from the range lows after a big liquidity grab and deviation,” popular trader Daan Crypto Trades summarized in part of his latest analysis on X. 

“Now back near the middle of the range from the past 6 weeks or so.”

Crypto trader, analyst and entrepreneur Michaël van de Poppe described BTC price action as experiencing a “trend switch.”

“It’s uptrending now, after we’ve had a massive liquidation crash taking place to sub $100K. It broke through $103K and hit the next resistance,” he told X followers. 

“Time to be buying the dip, so if we get to $103K, that’s the area you’d want to accumulate.”

Institutional trends likewise remained intact, even at the height of the US-Iran strikes, with the spot Bitcoin exchange-traded funds (ETFs) maintaining net inflows.

“Although the inflows were modest, no major outflows were recorded either, which is notable signal of investor confidence,” onchain analytics platform Glassnode commented on the ETF activity.

Fed’s Bowman could “support” July rate cut

In a further bullish signal, the US Federal Reserve signaled that it would be open to lowering interest rates sooner than markets expected.

Related: Why is Bitcoin price up today?

During a speech in Prague, Czech Republic, on June 23, Vice Chair for Supervision Michelle Bowman hinted that she would support a rate cut at the July Federal Open Market Committee (FOMC) meeting.

Bowman also suggested that the economic impact of US trade tariffs may be less acute than feared.

“If upcoming data show inflation continuing to evolve favorably, with upward pressures remaining limited to goods prices, or if we see signs that softer spending is spilling over into weaker labor market conditions, such developments should be addressed in our policy discussions and reflected in our deliberations,” she said. 

“Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market.”

The latest data from CME Group’s FedWatch Tool shows that markets believe the first of two 2025 cuts will come at the September FOMC meeting.

As Cointelegraph reported, Fed Chair Jerome Powell, himself under pressure from President Donald Trump to cut, is due to testify before lawmakers in Washington on June 24-25.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.