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Bitcoin rose on Monday, alongside broader cryptocurrency markets, as risk appetite surged with optimism over potential U.S. trade deals and growing expectations of interest rate cuts by the Federal Reserve.
The world’s largest cryptocurrency advanced by 1% to $108,358.7 by 01:10 ET (05:10 GMT), breaking out of the trading range that had defined most of June. Investors were buoyed by fresh signs of progress in U.S. trade negotiations, with Canada on Sunday rescinding its digital service tax on U.S. companies and signaling a willingness to restart trade talks with Washington. Ottawa is now eyeing a July 21 deadline to reach a new trade deal.
The positive mood was further supported by Japan’s efforts to continue trade negotiations with the U.S., as well as the activation of a U.S.-UK trade agreement on Monday. These moves added to growing expectations that the U.S. will secure more trade deals with major economies before the July 9 deadline, when steep tariffs proposed by President Donald Trump are set to take effect.
Bitcoin Eyes Third Straight Month of Gains
Bitcoin’s performance for June was up 3.6%, making it set for its third consecutive month of gains. The cryptocurrency’s rally this month was supported by a mix of U.S. policy optimism, progress on trade, and the growing belief that the Fed will cut interest rates in the near future. Bitcoin also reached a record high earlier in June, cementing its strong bullish momentum.
A key driver of Bitcoin’s upward trajectory was the progress of the stablecoin regulation bill in Congress. The proposed bill highlights President Trump’s commitment to advancing crypto-friendly regulations, which investors view as a positive signal for the future of digital assets. This regulatory support, coupled with institutional adoption, helped fuel Bitcoin’s rally.
Mortgage giants Freddie Mac and Fannie Mae also recently signaled that they will consider using cryptocurrency as collateral for home loans, further fueling speculation about the growing acceptance and mainstream adoption of digital assets.
Broader Crypto Market Sees Gains, but Altcoins Struggle
Broader cryptocurrency prices also saw a rise on Monday, benefiting from the same factors boosting Bitcoin, including U.S. rate cut expectations and increased risk appetite. However, altcoins generally lagged behind Bitcoin in June, with many struggling to keep pace with the market leader.
Ethereum (ETH), the world’s second-largest cryptocurrency, rose 2.8% on Monday but remains down 1% for the month. XRP saw a modest 0.3% rise, bringing its monthly gain to 0.9%. However, many other altcoins have been underperforming, with Solana (SOL) down 3.4% in June and Cardano (ADA) suffering the worst performance, down nearly 17% this month.
Among meme coins, $TRUMP dropped nearly 20% in June, while Dogecoin (DOGE) fell 13%. The meme coin market has faced significant challenges this month, as investor interest in these assets waned in favor of larger, more established cryptocurrencies like Bitcoin.
Outlook for Bitcoin and Altcoins
The outlook for Bitcoin remains positive as institutional interest continues to rise, with more corporate players buying into the cryptocurrency and regulatory support becoming more apparent. As Bitcoin’s dominance continues to strengthen, altcoins may struggle to catch up, particularly if corporate buying of Bitcoin continues to increase.
The broader crypto market’s focus will likely shift toward continued regulatory developments, particularly around stablecoins, and the impact of potential interest rate cuts by the Fed. If the market continues to anticipate dovish actions from the Fed, Bitcoin and other risk-driven assets could continue to see upward momentum.
For altcoins, it may take more substantial progress in terms of adoption, use cases, and regulatory clarity to reignite broader market interest and bring them back into the spotlight.
As the July 9 tariff deadline approaches and trade deal negotiations continue, market sentiment could remain volatile, keeping crypto prices on their toes. Whether Bitcoin maintains its leadership role or if altcoins catch up will largely depend on these evolving macroeconomic and geopolitical factors.
