This week, the cryptocurrency market is experiencing significant activity, with Bitcoin 
$75,023 prices surpassing $109,300. Despite the weakening in new job creation, the unemployment rate has come in below expectations, contributing to the market’s dynamics. Interestingly, the U.S. markets are open for half a day today and closed tomorrow, setting the stage for potential notable movements.
Cryptocurrencies and Volatility
There are reports that President Putin will be speaking with President Trump over the phone. Negotiations with Iran appear to be progressing well, and new tariff agreements are on the horizon. An agreement with Vietnam was announced yesterday, and discussions with India and the European Union are expected to unfold soon. All parties involved in the tariff negotiations aim to conclude the process by next Wednesday.
President Trump has stated unequivocally that he will not extend the July 9 deadline. He mentioned that those unwilling to come to an agreement would face consequences. The favorable terms reached with the United Kingdom and Vietnam demonstrate that acceptable conditions have been offered. Consequently, no nation should gamble its economy by confronting Trump unnecessarily.
Today and tomorrow present prime opportunities for Trump to challenge countries reluctant to finalize agreements, which may lead to further volatility in the cryptocurrency market. Investors should prepare for heightened volatility, as tariff agreements could drive prices upwards, while confrontations may lead them downwards.
July Interest Rate Cut
Employment figures have surpassed expectations, while U.S. markets opened on a positive note. Amid recession fears, favorable employment data is perceived less negatively. Although the erosion in employment might have spurred a rally due to anticipated rate cuts in July, lingering recession fears could reverse this. The situation may not be as grim as it seems.
Quinten made an initial assessment of the latest data, stating, “There will be no rate cut in July. However, this shouldn’t concern you. The real monetary expansion will stem from the relaxation of SLR rules.” He mentioned that the SLR exemption allows banks to exclude treasury bonds from leverage limits, enabling unlimited U.S. bond purchases without holding extra capital. This essentially equates to printing money or monetary expansion, propelling Bitcoin to new heights.
In response to these figures, Trump is expected to soon declare them “great.” However, the robust employment figures will temporarily deter the Fed from considering a rate cut. This was the final employment figure the Fed will review before its meeting at the end of the month, and unless there’s a major drop in inflation by mid-month, there will be no cut in the July meeting. Nonetheless, as markets haven’t priced in a cut for July, this is considered the best-case scenario for the medium term, despite short-term challenges.
Just before the U.S. market opened, Jelle indicated a target for Bitcoin at $130,000.
