Fed’s Waller Flags ‘Negative Scenario’ Rate Cuts; Bitcoin Maintains $85K Range

Bitcoin hovered near $85,000 on Monday, inching higher as optimism grew around U.S.-EU trade negotiations and the Federal Reserve hinted at a potential shift toward rate cuts if economic headwinds intensify.

The leading cryptocurrency rose 1.6% over the past 24 hours, signaling market stability after a turbulent stretch. Ether also posted gains, rising 2.7% to $1,630. Broader crypto markets followed suit, with the CoinDesk 20 Index climbing 1.2%, driven by notable performances from Solana (SOL) and Avalanche (AVAX).

Crypto-related equities caught the wave as well, with MicroStrategy (MSTR) and Marathon Digital Holdings (MARA) each advancing roughly 3%. U.S. stock indexes closed higher, with the S&P 500 up 0.8% and Nasdaq gaining 0.6%.

Waller’s Warning Hints at Pivot

Federal Reserve Governor Christopher Waller added fuel to the rally, suggesting that if tariffs reintroduced by the Trump administration weigh heavily on the economy, the central bank may need to cut rates sooner and more aggressively than previously anticipated.

“The effects on output and employment could be lasting,” Waller noted, signaling that a significant slowdown might require a swift monetary policy response.

Trade Truce Talks Lift Sentiment

The European Commission provided another tailwind, announcing a delay on retaliatory tariffs against the U.S. until at least July 14 to allow more time for negotiations. That pause sent a positive signal to markets, boosting odds of a breakthrough deal to 65%, according to blockchain-based prediction market Polymarket.

Bitcoin Network Shows Signs of Strength

Behind the scenes, Bitcoin’s fundamentals are quietly improving. SwissBlock Technologies analysts pointed to growing user participation and steadier liquidity inflows since March. Their proprietary indicators show the network’s health aligning with historical patterns that precede price breakouts.

“Liquidity is stabilizing, volatility is easing, and key resistance zones are being tested with accumulation rather than rejection,” SwissBlock noted. “That’s the foundation for sustainable upside.”

With both macro and on-chain signals aligning, traders are watching $85,000 as the next key level to clear—and potentially set the stage for a renewed leg up in the crypto bull cycle.