Bitcoin surged to a new all-time high of $112,000 on Tuesday, winning nearly 3% that day amid new optimism over monetary easing.
The rally comes hours after the Federal Reserve released its FOMC minutes in June. This showed that most policymakers support at least one rate cut in 2025. Several members said that if the inflation trend continues, they could cut it as soon as possible at the next meeting on July 30th.
Traders interpreted the Fed’s dove tone as a signal that liquidity conditions could improve later in the year. Low interest rates typically support the demand for risky assets such as Bitcoin by reducing the opportunity costs of holding them.
On-chain data shows that both short-term and long-term holders continue to accumulate BTC. However, some analysts have flagged weak spot demand as a potential concern. Despite price breakouts, evidence of sustained purchasing pressure for centralized exchanges is limited.
Still, the move above $112,000 has pushed Bitcoin into the realm of price discovery. The breakout clears major resistance levels that have been held since the last high in May 2025.
Ethereum also recorded a modest profit and traded nearly $2,800. The Altcoins were mixed, most showed low volatility.
Going forward, Crypto Market will closely watch June CPI data on July 11th, followed by the Federal Reserve’s decision on July 30th. Both are important in checking whether the Fed will begin cutting rates this summer.
For now, the new highs in Bitcoin reflect a growing confidence that US monetary policy is moving towards easing.
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