Middle East ceasefire, Powell does not rule out the possibility of rate cuts, Bitcoin remains stable at 105K

Due to the maintained ceasefire agreement between Israel and Iran, and the balanced comments on interest rate prospects by Federal Reserve Chairman Powell, US stocks continued to rise on Tuesday (6/24), with the S&P approaching a historic high. Bitcoin remained stable above 105K, with its market dominance rebounding to 62%. The Ethereum spot ETF's cumulative net inflow exceeded $4 billion, marking a significant milestone since its listing one year ago.

Federal Reserve Not in a Hurry to Cut Rates, Not Ruling Out Various Possibilities

Yesterday, Federal Reserve Chairman Powell delivered a speech at the House Financial Services Committee, reiterating his view that policymakers are not in a rush to adjust policy, which contradicts recent statements by Fed governors Christopher Waller and Michelle Bowman, who suggested a potential rate cut as early as July.

"If inflation pressures are indeed under control, we will cut rates as soon as possible," Powell told lawmakers in response to questions about the possibility of a July rate cut. "But I don't want to specify which meeting. I think we don't need to hurry because the economy remains strong."

However, he did not rule out other possibilities. Powell stated that the Fed might cut rates early if inflation is lower than expected or the labor market deteriorates. Similarly, inflation higher than expected could prompt the Fed to maintain current rates.

Powell acknowledged that recent economic data supports a rate cut. But he emphasized that these data are retrospective, and many economists anticipate a "significant increase" in inflation this year due to tariff impacts. The Fed cannot ignore this.

Money markets have fully priced in two rate cuts by the Fed by the end of 2025, with the likelihood of a first cut in September being much higher than in July.

Bitcoin Stable at 105K, Market Dominance Rebounds to 62%

Bitcoin remained stable above 105K, with Ethereum also holding above $2,400, and the crypto market sentiment returning to a neutral level of 47.

Bitcoin's market dominance (Bitcoin's market cap relative to the total market cap of all crypto assets) rebounded to 62%, indicating that capital flow continues to favor Bitcoin over smaller digital assets, which may delay the start of an Altcoin rebound.

The Ethereum spot ETF's cumulative net inflow exceeded $4 billion, with total net assets reaching $9.29 billion, representing 3.28% of Ethereum's market cap. This is also a significant milestone since the Ethereum spot ETF's listing one year ago.