🚀 Bitcoin (BTC) Roars Back: Fed’s Rate Cut Signals Fuel Bull Run

Wall Street's favorite volatility toy is back in business. Bitcoin bulls are charging hard after the Fed dropped its least subtle hint yet about impending rate cuts—because nothing says 'healthy economy' like emergency monetary policy, right?

The Fed's sugar rush
Powell & Co. just handed crypto traders the ultimate stimulus package. That dovish whisper sent BTC soaring past resistance levels faster than a hedge fund manager chasing performance fees.

Liquidity floodgates creaking
Market makers are positioning for the coming liquidity tsunami. Every basis point shaved off rates makes hodlers' diamond hands that much heavier.

Will this rally have legs? In crypto, fundamentals are what happens between price spikes. But for now, enjoy the ride—just remember the golden rule: Bulls make money, bears make money, pigs get slaughtered.

TLDR

• Bitcoin has recovered to near $108,000 after dipping below $100,000 last week due to Middle East tensions
• Federal Reserve rate cut expectations and institutional purchases are driving bullish sentiment
• Retail investors are increasing crypto exposure with 58% rebalancing portfolios toward digital assets
• MVRV ratio analysis suggests the bull market may be entering late stages with momentum slowing
• Technical analysts predict potential targets of $137,000 based on bull flag patterns and MACD indicators

Bitcoin has made a strong recovery to $107,000 after falling below six figures last week. The decline was triggered by escalating tensions in the Middle East between Israel and Iran.

The world’s largest cryptocurrency is now trading at $107,800, representing a 1.6% gain in the past 24 hours. This marks a full recovery from the recent dip that took Bitcoin down to around $98,000 on June 21.

Market sentiment has shifted due to dovish commentary from Federal Reserve Chair Jerome Powell. Powell indicated that rate adjustments remain possible, depending on successful trade deals and softening inflation. Investors interpreted these comments as hints toward potential rate cuts in late 2025.

JUST IN 🚨: The odds of an interest rate cut by the September FOMC now stand at 88% 🥳🫂 pic.twitter.com/DHuUOWSCE4

— Barchart (@Barchart) June 25, 2025

Nick Ruck from LVRG Research believes institutional purchases are accelerating the recovery. He noted that Powell’s rate cut hints have quickly changed investor sentiment in favor of crypto assets.

Retail demand is also strengthening according to recent data. eToro reports that 58% of U.S. retail investors are rebalancing their portfolios to favor digital assets. This shift comes amid a weakening dollar and rising global uncertainty.

CoinShares data shows that 89% of current crypto holders plan to increase their investments in 2025. An additional 75% of respondents are actively looking for entry points into the market.

Other major cryptocurrencies are following Bitcoin’s lead. ethereum is trading at $2,480 with a 1.8% daily gain. Solana, Dogecoin, XRP, and BNB all posted gains under 1% but could see further movement if Bitcoin and Ethereum continue recovering.

Technical Analysis Shows Mixed Signals

FxPro’s Alex Kuptsikevich noted that the overall crypto market cap rebounded sharply after dipping below its 200-day moving average. This confirms that level as new support for the market.

Bitcoin has also reclaimed its 50-day moving average, which could signal accelerating momentum. However, BTC remains about 5% below its recent highs and is lagging behind traditional tech stocks like the Nasdaq 100.

Despite the positive price action, some warning signs are emerging. CryptoQuant analyst Yonsei_dent highlighted concerns about Bitcoin’s Market Value to Realized Value ratio. The MVRV ratio compares current market cap to the value when coins last moved.

The MVRV’s 365-day moving average slope is flattening, which historically aligns with major market cycle peaks. This could indicate the bull market is entering its late stages, though it doesn’t necessarily mean an immediate downturn.

Institutional Adoption Continues

Institutional interest remains strong despite technical concerns. MicroStrategy CEO Michael Saylor recently predicted Bitcoin could reach $21 million by 2046. Mexico’s third-richest man has also increased his Bitcoin purchasing activity.

Government adoption is accelerating as well. The Texas State Government approved a strategic bitcoin reserve as part of its financial diversification strategy. This follows similar moves by other governments to embrace Bitcoin as a reserve asset.

Technical analyst Titan of Crypto sees potential for Bitcoin to reach $137,000. The prediction is based on a bull flag formation on daily charts and an upcoming MACD crossover signal.

#Bitcoin Bull Flag Target: $137,000 🎯

A bull flag is forming on the #BTC daily chart, while a bullish MACD crossover is about to occur. pic.twitter.com/od8GaJxVa6

— Titan of Crypto (@Washigorira) June 25, 2025

Some analysts warn of potential short-term pullbacks to the $93,000-$94,000 range. However, the overall trend remains positive with strong institutional backing and growing retail adoption.

Bitcoin’s resilience during Middle East tensions demonstrates its growing maturity as a store of value. The cryptocurrency is up 73.7% compared to June 2024, supported by rising institutional confidence.

At press time, Bitcoin trades at $107,158, maintaining its recovery above the psychologically important $100,000 level.