Chiara Bianchi
Bitcoin surged past $107,000 on Wednesday, quickly recovering from its recent slide below $100,000 caused by rising tensions between Israel and Iran. The tentative ceasefire agreement announced earlier this week boosted market sentiment, lifting the total crypto market cap to $3.4 trillion. Ether and Solana also recorded modest gains, while the GMCI 30 Index, tracking the top 30 cryptocurrencies, surged alongside Bitcoin.
Stocks Rally as Fed Maintains Neutral Stance
The rally was not limited to the crypto space. The S&P 500 gained 1.1%, reclaiming the crucial 6,000 level. However, futures remained subdued as Fed Chair Jerome Powell reaffirmed a neutral stance on interest rate cuts, stating that any shift in policy would hinge on later economic data. According to BRNโs Head of Research, Timothy Misir, this suggests that the first rate cut might now be delayed until December.
โThe Fed is likely to wait for September and October CPI data before making its first move, with a potential 50bp cut in December, rather than earlier in the year,โ Misir explained.
Institutional and State Demand Accelerate Bitcoin Adoption
Even amid cautious Fed commentary, institutional demand for Bitcoin surged. On June 24, U.S. spot ETFs pulled in $588.5 million, and ether funds added $71 million, bringing total inflows across crypto ETFs above $4 billion, per SoSoValue data. Meanwhile, state interest is rising sharply, with Arizona, Ohio, and Texas making moves to adopt Bitcoin reserves. Japanโs Metaplanet also announced a $514 million capital raise to expand its Bitcoin holdings.
Why Bitcoinโs Momentum Will Continue
โWith institutional and state adoption gaining momentum despite Fed uncertainty, Bitcoin is well-positioned for long-term growth,โ said Misir. According to BRN, the combined forces of state reserves, corporate adoption, and ETF inflows create a resilient foundation for the digital currency, making it increasingly immune to short-term macroeconomic and geopolitical headwinds.
