Bitcoin (BTC), which fell to $98,000 last weekend due to the tension in the Middle East, gave signs of recovery with the establishment of a ceasefire. However, the short-term optimism in the markets was not permanent due to the uncertainties regarding the interest rate policies of the US Federal Reserve (Fed). The markets entered this weekend with the PCE data from the US and the news of the US and China agreement from Trump, which was effective in partially recovering the risk appetite.
US President Donald Trump's increasing criticism of Fed Chairman Jerome Powell and his demand for interest rates to be lowered as soon as possible occasionally increases the tension in the markets. Trump's statements have also brought new discussions about whether Powell will be able to continue until the end of his term. These discussions also affect the perception of the Fed's independence. On the other hand, eyes were turned to the PCE price index data, which the Fed closely follows as an indicator of inflation. The PCE index announced on Friday exceeded expectations and announced a 2.7% increase on an annual basis.
The Fed’s preferred inflation indicator, core personal consumption expenditures, came in largely as expected for May, reinforcing the view that price pressures have cooled and keeping the door open for a rate cut later this year. The data released also had a positive impact on cryptocurrencies. Cryptocurrencies, which continued to follow a cautious course fueled by this development, entered the weekend with a recovery.
In addition to the PCE index, another important factor in the recovery of the markets was the agreement reached on the China-US tariff wars that have been occupying the agenda. The trade negotiations held in Geneva, Switzerland have yielded results and US President Trump announced that the two countries have reached an agreement. Trump said that his team has been working overtime on this issue and that other countries are also in line to make an agreement.
Together with all these developments, institutional investors’ interest in Bitcoin continues unabated. Recently, many companies other than Strategy have been purchasing Bitcoin. Bakkt, a public company that provides crypto custody and loyalty services, announced that it aims to raise up to $1 billion to support Bitcoin purchases. The source is planned to be provided through both stocks and debt instruments. The Smarter Web Company, based in the UK, raised a total of $56.59 million in funds immediately after purchasing 196 Bitcoins.
Japan-based investment company Metaplanet also continues to expand its Bitcoin purchasing strategy during this period. The company spent $132.7 million to purchase 1,234 more Bitcoins, bringing its total BTC holdings to 12,345. With this move, the company surpassed Tesla and became the seventh largest Bitcoin investor among publicly traded companies. On the other hand, Anthony Pompliano's company ProCap made its first Bitcoin investment after its IPO plans. The company purchased 3,724 Bitcoins, making a total purchase of $386 million.
Similarly, Sequans Communications, which develops semiconductor solutions, is also increasing its capital of $384 million for Bitcoin investment. The company plans to issue $195 million in stocks and $189 million in convertible bonds. In this process, cooperation will be made with Swan Bitcoin for Bitcoin treasury management. China-based Aurora Mobile, which is traded on Nasdaq, also approved a plan to invest 20% of its cash and cash equivalents in cryptocurrencies with the decision it announced.
In addition to institutional interest, there are also important developments on the regulatory side. The Arizona House of Representatives passed a bill that foresees the establishment of a reserve fund for seized crypto assets.
The question that comes to mind most when reading all the developments may be, “So what is the expectation in Bitcoin?” Technically, the $ 104,800-106,000 range is support for Bitcoin, while the $ 108,000-108,300 band is resistance. If the resistance is broken in volume, the $ 111,000 and $ 112,000-120,000 levels may be targeted. Geopolitical developments, trade wars and institutional purchases, a summary of the recent period. These developments have an impact on the course of cryptocurrency markets. The most important way for investors to reduce potential losses is to act cautiously, divide the risk and follow the developments closely.
