Bitcoin may surge as Fed considers cutting rates early due to global risks

From Cointelegraph
June 20, 2025 12:45 PM:

The Federal Reserve may cut rates early if global trade, energy supply, or US-Middle East relations worsen. A weakening dollar could lead to a Bitcoin price surge. The Fed kept interest rates steady at 4.25%, but could act earlier if necessary. Fed Governor Waller suggested lowering rates as early as next month due to low inflation threats.

Emergency rate cuts are rare and usually follow crises like the COVID-19 pandemic. Investor sentiment dropped during the panic, but assets like S&P 500 and Bitcoin recovered. Despite being adopted as a treasury reserve, Bitcoin remains highly correlated with tech stocks, seen as a high-beta play on future economic growth.

Tensions in the Middle East pose a macro risk, affecting energy supply and inflation. Trade uncertainties, like US-China tariffs, could impact exports and lead to rate cuts for credit expansion. A weak dollar increases Bitcoin’s appeal as an inflation-resistant asset. The DXY Index has dropped, signaling potential rise in demand for Bitcoin as a hedge against recession.

Read more at Cointelegraph: Bitcoin Bull Run May Restart Due to Surprise Fed Rate Cut