BTC Holds $85K Level as Fed’s Waller Warns Rate Cuts Could Come With Trade Shock

Bitcoin made a modest move upward on Monday, lifted by easing trade tensions and fresh signals from the Federal Reserve hinting at possible policy shifts if economic headwinds intensify.

The flagship cryptocurrency rose 1.6% over the past 24 hours, hovering just below the $85,000 mark. Ether (ETH) gained 2.7% to trade at $1,630, while the CoinDesk 20 Index — tracking the top 20 non-stablecoin cryptocurrencies — advanced 1.2%, with SOL and AVAX leading gains.

Crypto-related equities joined the rebound, with Strategy (MSTR) and MARA Holdings (MARA) rising by approximately 3% as broader equity markets ticked higher. The Nasdaq closed up 0.6%, and the S&P 500 added 0.8%.

Fed’s Waller Hints at Possible Cuts if Tariffs Hit Growth

Market sentiment got a boost after Fed Governor Christopher Waller indicated that renewed Trump-era tariffs could prompt aggressive interest rate cuts if economic growth falters.

“If the slowdown is significant and even threatens a recession,” Waller said, “then I would expect to favor cutting the FOMC’s policy rate sooner, and more deeply than previously projected.”

EU Holds Back Tariffs Amid Ongoing Talks

In another positive development, the European Commission announced it would delay retaliatory tariffs on U.S. goods — worth €21 billion — until July 14, to give room for continued negotiations. On Polymarket, odds of a successful trade deal between the U.S. and EU jumped to 65% after reports emerged that President Trump said progress was being made.

Bitcoin’s Technical and On-Chain Health Improving

Although BTC remains rangebound below the $85,000 resistance level, on-chain indicators suggest mounting momentum, according to SwissBlock Technologies.

“New user inflow has been consistent since March, and liquidity has begun to stabilize,” SwissBlock analysts wrote in a Telegram note. “With volatility cooling off and accumulation increasing, the structure is ripe for a breakout.”

Their analysis points to rising liquidity and network expansion — two components that historically align with bullish price trends.

“This kind of backdrop doesn’t just support price rallies — it helps sustain them,” SwissBlock concluded.