Dogecoin and ADA Lead Crypto Rebound Amid Speculation Over Next Fed Move

Bitcoin is inching closer to $100,000 as a combination of Fed policy expectations and trade deal optimism drives crypto prices higher. Dogecoin (DOGE) and Cardano’s ADA led the charge, posting gains of 5% and 4%, respectively. Ethereum (ETH), Solana (SOL), BNB, and XRP followed suit with 2%-3% increases. The CoinDesk 20 Index, which tracks the largest cryptocurrencies by market cap, rose 2.2% on the day.

The bullish move was sparked by a Wednesday evening post from former President Donald Trump, who teased a significant trade agreement with a “highly respected country,” which sources identified as the U.K. Trump suggested the trade deal would mark the start of a series of similar agreements, boosting hopes for a de-escalation of the ongoing tariff wars.

Simultaneously, the Federal Reserve’s decision to hold interest rates steady, while expected, contributed to the market’s sense of stability. However, traders are now looking ahead to potential rate cuts, with the CME FedWatch Tool showing a 55% likelihood of a 0.25% rate cut in July and expectations for 100 basis points of total easing by the end of the year.

“Bitcoin’s climb toward $100K reflects growing optimism over a possible rate cut cycle,” said Semir Gabeljic of Pythagoras Investments. “The Fed is under political pressure, and it’s hard to ignore the growing demand for more accommodative policy.”

However, not all analysts are confident in the Fed’s ability to manage the economic backdrop. Gabe Selby from CF Benchmarks warned that the central bank may be risking stagflation—where inflation rises alongside stagnant growth and rising unemployment. With tariffs impacting prices and labor market data weakening, Selby sees a complex road ahead.

“While the Fed may eventually cut rates, they could be too late,” Selby said. “The risks are high for the broader economy, but Bitcoin seems to be thriving in this volatile environment.”

Indeed, Bitcoin is benefiting from institutional interest, with U.S.-based spot Bitcoin ETFs like BlackRock’s IBIT seeing massive inflows—$4.3 billion in the past month alone. This highlights Bitcoin’s growing role as a hedge against both economic uncertainty and geopolitical risks.

“Bitcoin’s upward momentum is a reflection of changing attitudes toward digital assets,” said Jupiter Zheng of HashKey Capital. “It’s becoming a cornerstone asset for investors seeking stability in unpredictable times.”