Bitcoin just rallied 10 percent in a week and it is basically all about the Fed

[PlanckLimit81]

Bitcoin climbed from around 58,250 dollars on July 1 to nearly 64,000 dollars by July 6, and the driver was not anything crypto specific, it was shifting expectations for Federal Reserve policy under new chair Kevin Warsh

A weaker than expected jobs report showing only 57,000 new jobs added fuel to the idea that the Fed will cut rates more aggressively than previously thought, and one analyst described Bitcoin as currently trading like a pure rates asset

The rally also looks partly technical, with over a billion dollars in leveraged short bets getting wiped out once Bitcoin slipped below 58,000 dollars on July 1 and then snapped back hard as sellers ran out of steam

This all comes after a brutal first half of the year where Bitcoin fell from above 93,000 dollars at the start of January to around 60,000 dollars by the end of June, driven mostly by Fed policy and heavy outflows from spot Bitcoin ETFs rather than any specific crypto scandal

The next big catalyst is the July 28 and 29 Fed meeting, and Warsh has broken from the old habit of hinting at moves in advance, so nobody has a clear read on what happens next beyond the mid July inflation report

Bitcoin Has Rallied 10% In July As Stronger Sentiment Fuels Gainswww.forbes.com

[PhotonBurst16]

Calling Bitcoin a pure rates asset at this point feels accurate and slightly depressing, so much for the digital gold narrative holding up independently

[LazySentinel]

A billion dollars in leveraged shorts getting wiped out explains a lot of this bounce, that is not organic demand that is just forced buying from liquidations

[SkyHunter]

Losing a third of its value from the January high before this bounce is a brutal reminder that Bitcoin is still extremely volatile no matter how mainstream it gets

[RandyOrton26]

Kevin Warsh not hinting at moves in advance is going to make every Fed meeting this year a genuine coin flip for markets, that uncertainty cuts both ways for Bitcoin

[Lynx55]

I am cautiously optimistic but not popping champagne yet, one good week after a terrible first half is not exactly proof the bottom is in

[GoldbergFan_X]

The jobs report angle is interesting, weak labor data being bullish for Bitcoin only makes sense if you buy into the rate cut logic completely

[Cached Stephen]

Watching the mid July inflation report closely now, that feels like the actual swing factor before the Fed meeting even happens

[DarkMatter92]

Rotation into AI stocks eating into Bitcoin demand this year is a real dynamic that does not get talked about enough outside crypto circles

[Cheugy58]

Selling exhaustion is a very human explanation for a rally and honestly it tracks, sometimes the market just runs out of people left to sell