Bitcoin rebounded during Tuesday’s trading session after Federal Reserve Chair Kevin Warsh avoided signaling the direction of the July interest rate decision. The cryptocurrency recovered from an intraday decline below $58,000 and approached the $60,000 level. Meanwhile, traders continued assessing monetary policy expectations and broader macroeconomic developments that could influence digital asset prices.

Bitcoin Rebounds After Warsh Avoids July Rate Signals

Bitcoin recovered after Kevin Warsh declined to provide guidance on the Federal Reserve’s next policy decision. Instead, he maintained that policymakers would rely on incoming economic data before making any interest rate adjustments. As a result, markets reacted to the absence of new policy signals rather than expectations of immediate action.

The cryptocurrency climbed nearly 2% from its intraday low and traded around $59,700 during the session. Earlier, Bitcoin had slipped below the key $58,000 psychological level before regaining momentum. Consequently, buyers returned as uncertainty around immediate monetary policy eased.

Warsh also continued his preference against providing advance policy guidance. He indicated that future Federal Reserve decisions would remain dependent on economic conditions instead of preset commitments. Therefore, market participants received no indication about whether July would bring another rate adjustment.

Rate Expectations Continue to Shape Bitcoin Outlook

Despite Bitcoin’s recovery, markets still expect the Federal Reserve to leave interest rates unchanged during the July Federal Open Market Committee meeting. CME FedWatch data currently assigns a 72.7% probability to unchanged policy rates. However, expectations beyond July remain divided because inflation risks have not completely disappeared.

Recent geopolitical tensions involving the United States and Iran have contributed to inflation concerns across financial markets. Even so, Warsh indicated that inflation expectations eased during the opening weeks of the recent conflict period. He also reaffirmed the Federal Reserve’s commitment to returning inflation toward its long-term 2% target.

Prediction markets still suggest that another rate increase remains possible before year-end. Polymarket data currently assigns a 54% probability to at least one additional Federal Reserve rate hike. Accordingly, those expectations continue influencing sentiment across cryptocurrencies and other risk-sensitive assets.

Broader Market Factors Continue Influencing Bitcoin

Expectations of tighter monetary policy remain one of several pressures affecting Bitcoin’s broader price outlook. Higher interest rates generally reduce demand for risk assets because borrowing costs increase across financial markets. Therefore, traders continue weighing economic data alongside central bank policy expectations.

Another source of pressure involves the possibility that Strategy could sell up to $1.25 billion worth of Bitcoin. Such a transaction could temporarily increase available market supply and influence short-term price action. However, no confirmed sale has occurred, and the possibility remains one among several market considerations.

Meanwhile, Morgan Stanley recently projected that the Federal Reserve could maintain current interest rates throughout the remainder of the year. The bank also noted that persistent inflation or a stronger labor market could eventually revive discussions about additional tightening. As a result, Bitcoin continues responding to changing macroeconomic expectations while broader financial conditions remain uncertain.

Bitcoin has frequently reacted to changes in United States monetary policy over recent years. Lower interest rates often support demand for higher-risk assets, while higher borrowing costs usually reduce liquidity across markets. Consequently, Federal Reserve decisions have become an important driver of cryptocurrency performance alongside industry-specific developments.

The Federal Reserve continues balancing inflation control with broader economic growth objectives. Economic reports on employment, consumer prices, and spending remain central to future policy decisions. Therefore, upcoming data releases could influence both interest rate expectations and Bitcoin’s short-term direction during the coming months.

XRP and Hyperliquid’s HYPE have emerged as notable bright spots amid record outflows from U.S. spot crypto exchange-traded funds (ETFs).

XRP-linked ETFs added $59.4 million in June, a third straight month of net inflows, albeit at a slower pace than during the previous two months, according to SoSoValue data. HYPE funds notched up $161 million in net inflows during the month.

In contrast, bitcoin BTC$59,881.06 ETFs suffered record outflows of more than $4 billion, ether (ETH) ETFs saw $528.99 million in outflows and solana (SOL) ETFs shed $786,000.

The positive flows into both XRP and HYPE funds signal potential for significant spot price appreciation, particularly if bitcoin and the broader market stabilize.

HYPE also has support at the fundamentals level. Its parent, the decentralized exchange Hyperliquid, generated just over $80 million in fees over the past 30 days, according to DefiLlama. This places it third among all protocols and behind only stablecoin giants Tether ($486.9 million) and Circle Internet ($184.07 million).

Speaking of potential for market stability, July offers hope. According to Alex Kuptsikevich, the chief market analyst at the FxPro, July tends to be a positive month for the largest cryptocurrency.

Manny Rutinel, a Democratic candidate running to represent Colorado’s 8th congressional district, has won his party’s primary and will head to the November election after being supported by a crypto-aligned political action committee (PAC).

Early on Wednesday, Rutinel reported that Rutinel would be the Democratic nominee for Colorado’s 8th district, having won with 61.7% of the vote against Shannon Bird’s 33.6%. Before the primary, the You Can Push Back Super PAC, backed by $3.5 million from Ripple Labs co-founder Chris Larsen, reportedly spent $1 million on media to support Rutinel’s run. 

The Colorado Democrat has a “strongly supports crypto” rating from the Coinbase-affiliated Stand With Crypto organization, based on his answers to questions about stablecoins, market structure and regulatory clarity. Coinbase is also a major contributor to the Fairshake PAC, which supports what it considers “pro-crypto” Democratic and Republican candidates for Congress.

Source: Stand With Crypto

On Tuesday, the consumer advocacy group Public Citizen reported that the cryptocurrency industry had spent about $189 million so far on contributions to influence the 2026 US elections, largely through PACs. In what some experts say is the industry repeating its 2024 strategy, crypto-aligned groups are expected to continue spending to elect what they consider “pro-crypto” politicians.

Related: Senate leaders push for July passage of CLARITY Act

Cointelegraph reached out to a spokesperson for You Can Push Back but did not receive an immediate response.

Poll shows Americans think crypto has too much influence in Washington, DC

A new poll commissioned by Americans for Financial Reform released on Wednesday showed that a majority of Americans are concerned about the influence the crypto industry has on US lawmakers. The results followed financial disclosures showing that US President Donald Trump profited by more than $1.4 billion from his crypto investments.

“Voters have seen serious crypto corruption and high ranking government officials raking in profits while everyday people experience crypto-fueled losses and scams,” said Mark Hays, the associate director of crypto and fintech at Americans for Financial Reform. “Voters want crypto to have to play by the same kinds of rules as other financial companies, not dictate special privileges for itself.”

White House Deputy Press Secretary Anna Kelly said on Tuesday that neither Trump nor his family “has ever engaged — or will ever engage — in conflicts of interest.”

Among the poll’s results included a majority of Democrats, Republicans and Independents being concerned about crypto-related laws being influenced by donations from those in the industry. Americans for Financial Reform concluded that voters were likely to agree that the crypto industry needs sensible regulation.

Magazine: The end of anonymity? AI could unmask crypto’s hidden identities

President Donald Trump’s positive comments on U.S.-Iran negotiations have lifted crypto markets, pushed oil below $70, and added more than $74 billion to gold’s market value as investors reposition for easing geopolitical risks.

According to President Donald Trump, relations with Iran have remained positive and ongoing negotiations in Qatar are progressing well, prompting a swift reaction across financial markets as traders reassessed the likelihood of a prolonged Middle East conflict.

Speaking on Wednesday, Trump said Iran’s “denuclearization is well on its way” and described the meetings as “excellent” before adding, “We’ll see.” His remarks followed a Truth Social post earlier this week in which he said U.S. officials would meet Iranian representatives in Doha at Tehran’s request.

Crypto extends gains as geopolitical tensions ease

While diplomatic discussions continued in Qatar, Bitcoin climbed more than 3% to an intraday high of $60,401 before easing to $60,120 at press time. Ethereum gained 2.8% to $1,620, XRP added 1.5%, and Solana outperformed with a 5% advance. The total cryptocurrency market capitalization also increased about 2% to $2.14 trillion.

The rally came as investors reduced demand for traditional safe-haven assets tied to geopolitical uncertainty. Gold added more than $74 billion in market value during the session, while U.S. benchmark WTI crude oil fell more than 2% for the first time since tensions between the United States and Iran intensified, closing below the $70 level.

Analysts nevertheless urged traders to remain cautious despite the rebound, noting that negotiations are still underway and that market direction will continue to depend on diplomatic developments.

Earlier this week, as reported by crypto.news, renewed attention also returned to comments from Rich Dad Poor Dad author Robert Kiyosaki, whose March prediction that Ethereum could reach $95,000 by mid-2027 resurfaced across crypto social media.

Kiyosaki argued that a major global financial crisis could trigger a sharp repricing of alternative assets, forecasting Ethereum at $95,000, Bitcoin at $750,000, gold at $35,000 per ounce, and silver at $200 following such an event.

Markets remain focused on the outcome of Doha negotiations

Diplomatic efforts have continued beyond Trump’s latest remarks. U.S. representative Jared Kushner and envoy Steve Witkoff are in Qatar for another round of discussions, while Qatar and Pakistan are serving as mediators during the negotiations.

Separate talks have also taken place between Iran and Oman, which recently established a joint committee to address issues surrounding the Strait of Hormuz and other ceasefire-related matters. Those discussions have added to expectations that negotiations are expanding beyond the immediate nuclear issue.

Prediction market Polymarket currently assigns a 62% probability that the United States and Iran will extend their 60-day negotiation period. Although that estimate suggests traders expect diplomacy to continue, it does not guarantee an agreement.

For now, Trump’s latest comments and the ongoing meetings in Doha have encouraged investors to price in a lower risk of further escalation. At the same time, market participants continue watching for concrete progress, since a formal agreement could extend the current rally across risk assets, while another breakdown in negotiations or the expiration of the 60-day deadline without an extension could reverse recent moves in cryptocurrencies, oil, and other global markets.

To support its case, the report highlighted Ethereum’s technical track record, noting that the network has maintained uninterrupted uptime since launching in 2015. Citing a recent OpenZeppelin report, the foundation said Ethereum was secured by roughly $76 billion worth of staked ETH as of March 2026, while emphasizing its geographically distributed validator network, multiple independent client implementations and large developer ecosystem.

Beyond technical metrics, the report framed Ethereum as digital public infrastructure rather than simply a financial network. It pointed to existing deployments, including decentralized identity initiatives in Bhutan and Buenos Aires and Ethereum-based land registry projects in India, as examples of governments already experimenting with the technology.

The publication comes as governments around the world increasingly explore blockchain-based infrastructure for identity, asset tokenization and public records. The Ethereum Foundation said policymakers should distinguish between decentralized public blockchains and networks that remain controlled by corporations or foundations, arguing that governance structures will play a critical role in determining which platforms are suitable for long-term public sector use.

Read more: Ethereum gets a new nonprofit focused on institutional adoption

Bitcoin has made its way back into market conversations following some interesting developments in South Korea’s equity markets, which could indicate that investors are gradually increasing their appetites for risky assets. In particular, while the benchmark KOSPI has seen wide-ranging losses from various companies listed, the tech-heavy KOSDAQ saw an impressive rally.

This contrast may lead market participants to speculate whether the improvement in risk appetite could possibly move into other asset classes, including digital currencies like Bitcoin. There is no indication of any capital inflow into cryptos at the moment, but previous developments have been similar in nature.

Rotation of Capital Pushes Up KOSDAQ Index

According to market information provided by CryptoSavingExpert, about $65 billion worth of market capitalization was lost by firms listed on the KOSPI during the latest market trading session. On the other hand, KOSDAQ gained over $100 billion worth of market capitalization while appreciating by roughly 7.5%.

The trend did not indicate a general pullback from the South Korean stock market. Instead, it pointed to investors shifting their capital from big companies to small companies with high growth prospects. It indicated growing confidence among speculators and their preference for companies with higher risks but potentially bigger gains.

Pressure on Large-Cap Stocks From All Sides

Market heat maps highlighted weaknesses of major stocks in the Korean market, showing mostly red across major industry groups.

Samsung Electronics, the biggest listed firm in South Korea based on its market capitalization, saw a decline of 0.93%, which was one of the causes of weakness for the KOSPI index. The list of weak firms includes many others.

Among the biggest losers:

• Samsung Electronics – 0.93%
• SK Hynix – 0.97%
• Kumho Tire – 1.30%
• Hyosung – 0.90%

The companies belong to various industries, such as technology, manufacturing, automotive, and industrial. This indicates that institutions were selling off large-cap stocks rather than anything specific going on within a certain company.

Bitcoin Under Investor Watch Again

The equity rotation cycle has put the spotlight back on Bitcoin, as the question remains whether improved risk sentiment will extend into crypto assets.

It has been observed in the past that during periods of high interest in risky assets, crypto assets—especially Bitcoin—have occasionally seen positive performance, as they are considered high-risk assets. When investors start being more risk-tolerant, their attention tends to move towards alternate asset classes outside traditional stocks. Nevertheless, there is no certainty involved.

Prices of cryptocurrency will still be determined by a host of other factors, such as liquidity conditions in the global economy, monetary policies, macroeconomic trends, institutional involvement, and investor positioning in general. Equity rotation alone will not suffice in driving flows into Bitcoin.

Market Sentiment Might Give Early Indications

Even though Bitcoin has not enjoyed any particular upside because of changes in South Korea’s market dynamics, there is another way changing investor sentiment can be tracked through equity rotation.

The performance of the KOSDAQ and selling pressure in the KOSPI are indicators that investors have become more comfortable taking risks following a period when they preferred safe havens.

Market players will keep track of how far this changing sentiment spreads into other financial markets around the world before it starts affecting cryptocurrencies. If speculative demand strengthens, Bitcoin might be one of the coins set to gain as investor sentiment shifts toward risky assets.