Bitcoin (BTC) ticked higher on Monday, buoyed by improving macro sentiment as U.S.-EU trade negotiations progress and Federal Reserve officials signal possible rate cuts in the face of renewed tariff threats.

BTC gained 1.6% over the past 24 hours, trading just below the $85,000 level. Ether (ETH) rose 2.7% to $1,630. The CoinDesk 20 Index, tracking major crypto assets excluding memecoins and stablecoins, advanced 1.2%, with Solana (SOL) and Avalanche (AVAX) leading.

Crypto stocks also saw gains, with MicroStrategy (MSTR) and Marathon Digital (MARA) both up around 3%, mirroring broader equity market moves. The S&P 500 closed 0.8% higher, while the Nasdaq added 0.6%.

Fed’s Waller Opens Door to Rate Cuts Amid Tariff Fears

Federal Reserve Governor Christopher Waller said Monday that a return of Trump-era tariffs could weigh on economic growth, possibly requiring rate cuts to cushion the impact.

“If the slowdown is significant and even threatens a recession,” Waller said, “I would expect to support cutting the policy rate sooner and more aggressively than previously planned.”

EU Pauses Tariff Retaliation

The European Commission said it will delay retaliatory tariffs worth €21 billion on U.S. goods until mid-July, creating a window for ongoing negotiations. That announcement helped lift market confidence, with prediction market Polymarket pushing odds of a U.S.-EU trade deal to 65% following remarks from President Trump that a deal is “within reach.”

Bitcoin Fundamentals Improve

Despite stalling near $85K resistance, analysts at SwissBlock Technologies noted BTC’s improving fundamentals, including rising liquidity and sustained network growth.

“We’re seeing consistent inflows of new participants and reduced volatility since March,” SwissBlock said in a client update. “Once liquidity levels hold above key thresholds, price action typically follows with strength.”

Analysts said the current setup reflects structural support for a potential sustained move higher.