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The Bitcoin price surge above $106,000this week has reignited bullish sentiment across the market, with analysts suggesting that the stars are aligning for a rally to a new all-time high. From shifting geopolitical tensionsto a major regulatory pivot in the United States (US), multiple macroeconomic factorsappear to be setting the stage for Bitcoin’s next explosive move. Ceasefire And Rate Cut Buzz Fuel Bitcoin Price Optimism
Over the weekend, the Bitcoin price briefly slipped, triggeringover $200 million in leveraged long liquidations. However, this dip proved short-lived as the flagship cryptocurrency rebounded swiftly above $100,000 following US President Donald Trump’s announcement of a total ceasefirebetween Israel and Iran. This sudden de-escalation helped ease global market anxiety, pushing Bitcoin past $106,000 and oil prices sharply downfrom $77 to under $70. Related Reading Bitcoin Price Could Rally To $110,000 ATH As These Macroeconomic Factors Align 4 hours ago
Simultaneously, Optimism is building that the US Federal Reserve (FED)could begin cutting interest rates sooner than expected. Sharing new data by CME Group’s FedWatch Tool, crypto analyst CW disclosedthat the odds of a FED rate cut have increased to 18.6% by July 30 during the scheduled FOMC meeting.
The report reveals that 81.4% of market participants believe the FED to keep rates unchanged at their current level. However, FedWatch’s data indicatesgrowing expectations for a rate cut by the September FOMC meeting, with 79% betting on a reduction and only 21.3% anticipating no change.
Notably, lower interest rates generally benefit risk assets like Bitcoin by increasing liquidity and boosting investor sentiment. With geopolitical tensions easingand a possibly looser monetary policy on the horizon, Bitcoin could gain further momentum, potentially climbing to $110,000.
Supporting this bullish forecast, crypto analyst Justin Bennett suggeststhat Bitcoin is gearing up for a rally toward a new ATHof $110,000 following its recent reclaim of the key $103,500 level. Although a retracement to around $102,500 remains possible, Bennett believes that once BTC cleans up support around $103,400, formed during Monday’s expansion, the next move could be parabolic. Source: Justin Benner on X Regulatory Win Solidify Bitcoin’s Position In TradFi
Beyond anticipated rate cutsand ceasefire announcements, the US FED recently made a landmark policy shift that could have profound long-term implications for Bitcoin and the broader crypto market. By removing “reputational risk”as a factor in evaluating crypto firms’ access to bank servicing, the FED is effectively ending a key pillar of Operation Checkpoint 2.0—a campaign that restricted over 30 crypto and fintech companies from traditional financial infrastructure. Related Reading Bitcoin Price Deviates From Global M2 Money Supply, Is The Bull Run Over? 5 days ago
This recent changeclears the way for greater institutional involvement in crypto. The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) have also followed suit, green-lightingcrypto activities for banks and allowing them to participate in the digital assets market without prior approval. Together, these moves mark a regulatory pivot that not only legitimizes the crypto industry but could also accelerate demand and capital inflows into Bitcoin, potentially boosting its already significant valuation. BTC trading at $107,072 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pixabay, chart from Tradingview.com