Federal Reserve Governor Christopher Waller hinted at an interest rate cut "as early as July" during a CNBC interview on Friday, briefly sending Bitcoin above $106,000 before the cryptocurrency retreated to around $104,000. The dovish comments mark a potential shift from the Fed's recent stance of keeping rates unchanged for four consecutive meetings.
Waller's Dovish Comments and Market Reaction
"I think we're in the position that we could do this and as early as July," Waller said, referring to a potential rate cut. "That would be my view, whether the committee would go along with it or not." The remarks come amid ongoing criticism from U.S. President Donald Trump, who has repeatedly called Fed Chair Jerome Powell a "numbskull" and "dumb" for not cutting rates quickly enough. Waller's comments could signal the first rate cut Trump has been demanding.
Following the interview, Bitcoin surged to $106,539.38 before pulling back to $104,294.98 at the time of writing. Equity markets showed mixed results: the Dow Jones rose 0.16%, while the S&P 500 and Nasdaq fell 0.26% and 0.64% respectively. Crypto markets initially inched up 0.47% but later shed 0.13%.
Key Market Metrics Point to Elevated Speculation
Over the past 24 hours, Bitcoin traded between $103,932.09 and $106,539.38, with a slight 0.05% intraday decline. Weekly performance shows a 1.22% drop. Trading volume edged up 1.54% to $42.65 billion, and total market capitalization slipped 0.06% to $2.07 trillion. BTC dominance increased modestly to 64.94%, suggesting outflows from altcoins.
Futures open interest climbed 0.90% to $70.09 billion, indicating rising speculative activity. Liquidation data reveals $40.03 million in long positions and $22.61 million in shorts were wiped out, totaling $62.64 million in liquidations over the past day.
Outlook: Rate Cut Hopes vs. Market Reality
While Waller's dovish tone provided a temporary boost, Bitcoin's inability to hold above $106,000 reflects lingering uncertainty. Investors will closely monitor the Fed's July meeting and upcoming economic data. If economic weakness accelerates, rate cut expectations could strengthen, providing support for Bitcoin; however, persistent inflation might delay any policy easing.