The price of Bitcoin 
$78,815 climbed to $106,800, signaling a resurgence in the cryptocurrency markets. The Minister of Trade had indicated that the recovery phase would commence by the third quarter. With the two most challenging quarters now behind, there is optimism for growth, especially if no adverse surprises arise regarding tariffs.
The Impact of Fed’s Potential Rate Cut
Mid-month inflation data is expected, followed by the Fed’s interest rate decision at month’s end. A slowdown in employment has led three Fed members to assert that the time for rate cuts has arrived. Even Powell now hesitates to declare with certainty that there will be no rate cut in July. If a tariff agreement concludes with low taxes, the limited impact on inflation might encourage the Fed to cut rates.
Current Economic Observations
The U.S. economy is in good shape, with inflation trends aligning with expectations and hopes. There are expectations for higher figures during the summer months. Upon observing the scale of customs duties, interest rate hikes have been paused. A cautious approach of waiting for more information is deemed wise.
A majority within the Fed anticipates rate cuts later this year. Speculation remains regarding whether July is too premature for such cuts, keeping all meetings on the agenda, data-dependent. There is a gradual cooling observed in the labor market, but growth remains robust, bolstered by a strong labor market.
The U.S. S&P Manufacturing PMI Final data was released at 52.9, compared to a forecast of 52 and a previous figure of 52.0, thereby balancing recession fears. This scenario is favorable for cryptocurrencies.
