Rate Cut Hopes & Tariff News Propel Bitcoin Toward ATH

Bitcoin is back in the headlines, and this time not just crypto investors are sitting up and taking notice. Hot news from Washington and speculation from the Federal Reserve have investors and traders holding their breath as the world's biggest cryptocurrency toys with a new all-time high.

Last week, the US Treasury shocked everyone with the news: the much-feared new round of tariffs on imported foreign goods would be delayed until August 1. For global markets, that was a welcome relief. For Bitcoin, it was rocket fuel. The delay assuaged worries about an economic jolt to the system, prompting traders to flock to riskier assets—like BTC.

Adding to the upbeat mood, several Fed officials also signaled that interest rate cuts were in the offing as soon as this September. Goldman Sachs took it a step further and predicted three cuts by year-end, based on the rationale that both inflation has eased and the labor market is moderating. For Bitcoin, which survives on macro turmoil and the prospect of cheaper funds, this was the kind of news bulls wanted to hear.

Bitcoin wasted little time to respond. Over the weekend and through Monday, it spiked above $109,000, a new weekly high, and was close in sight of its all-time record $111,814 set just weeks earlier. Traders are placing wagers openly now that BTC will move above the $110,000 barrier in days.

What the Markets Are Really Saying

The rolling swap market—a favorite playground for professionals—suggests funding rates near zero. This means the market is balanced, with bulls and bears not getting too excited. But 71% of funding periods remain positive, a subtle signal there is a tendency to go long.

Option traders aren't panicking, either. The 25 Delta Skew, one of the main measures of sentiment, has cooled down, and implied volatility is at record lows. Translation: the market expects smooth sailing, but experience-karmic traders know that still waters can hide sudden storms.

Order-Book Depth

Spot and futures volumes are lower, which is to be expected in summer. Underneath, however, lies a thick layer of buy orders just beneath $109K—a safety net that might turn into a springboard in a jiffy if momentum takes off.

What Traders and Social Media Are Saying

Crypto is not charts and graphs—it's hype, emotion, and narratives that individuals share with each other. This week, Crypto X and trading boards have been in a frenzy:

Key Info to Watch

• Any reversal or intensification of US trade policy can flip sentiment in a flash.
• The next Federal Reserve meeting and inflation data will be key. If the Fed implements a dovish shift, another bout of buying will be in the cards.
• Watch funding rates and options skew for signs of early warning for exhaustion or fresh momentum.
• A recent spike in spot or futures volume can indicate a breakout—or reversal—is imminent.

The Takeaway

Bitcoin's recent rally is a textbook example of how human psychology and international news can interact to move markets. With a tariff break and the promise of decreasing interest rates, traders are going all in on a new high. But as always in crypto, the only thing that's certain is volatility—and the next act could be just as exciting as the previous one.