Bitcoin's ongoing price surge is fueled by the extended U.S. tariff pause and upcoming "Crypto Week" events.
Analysts like John Bollinger expect an "upside breakout" for Bitcoin, which will lead to new all-time highs.
Elon Musk's new political party's embrace of Bitcoin on X is adding to the cryptocurrency's market optimism.
The rest of the crypto market,, including altcoins like Ether, XRP, and Solana, is also in the middle of an upturn.
The upcoming U.S. Consumer Price Index (CPI) release on July 15 is important for the future of US financial markets.
Bitcoin is back in the spotlight this week and is showing strong momentum.
This is especially as the market expects massive macroeconomic events that could push the cryptocurrency towards a new all time high this week.
According to reports, the U.S. tariff deadline has now been extended. This development, alongside the “Crypto Week” scheduled in Washington, D.C. has investors closely watching Bitcoin.
Bitcoin traded above $109,000 on Monday morning, after recovering from a brief dip below $108,000 over the weekend.
The cryptocurrency even closed Sunday at a new weekly high of $109,443.
The new tariff developments | Source: Twitter
The surge comes as the Trump administration announced a postponement of tariffs that were originally slated to take effect this week.
U.S. Treasury Secretary Scott Bessent confirmed that tariffs on countries without a U.S. trade agreement will now be implemented on August 1 instead of 9 July.
This has offered an extra window for negotiations and has massively reduced market fears of another selloff.
Several analysts now believe that Bitcoin is gearing up for an incoming surge to the upside.
For example, John Bollinger, inventor of the Bollinger Bands indicator said, over the weekend that Bitcoin “looks to be setting up for an upside breakout.”
Despite the enthusiasm, market participants are still bracing for volatility this week, especially with the July 9 deadline for the 90-day tariff pause approaching.
Many experts still believe that any dips in Bitcoin’s price could be short-lived and present buying opportunities.
Another addition to the rally has been the recent announcement from Elon Musk about his newly-formed political party embracing Bitcoin on X (formerly Twitter).
While Bitcoin is leading the charge, the rest of the crypto market is taking a lead as well.
For example, over the last 24 hours, the total crypto market capitalization surged by over $50 billion, according to data from CoinMarketCap data.
Ether rose 2.41% to $2,577, XRP gained 2.29% to $2.27, and Solana climbed 2.96% to $152.
The GMCI 30 Index, which tracks the performance of the top 30 cryptocurrencies, advanced 2.2% in a show of strong investor interest across the board..
Looking ahead, the next major macroeconomic data point is the U.S. Consumer Price Index (CPI), which is due for release on July 15.
This report is set to offer insight into inflation levels and guide expectations around possible interest rate cuts from the Federal Reserve.
Overall, as Bitcoin inches closer to its previous all-time high, many believe a breakthrough could be what the cryptocurrency needs to enter a new phase of price discovery.
In the past, new highs have often triggered waves of institutional and retail interest, which eventually translate to quick rapid price escalation.
Possible rate cuts this week | Source: Twitter
Considering how favorable conditions are now lining up including reduced macroeconomic risk, bullish technical indicators and rising investor appetite, the stage appears to be set for a massive pump.
Bitcoin’s rally above $109,000 shows a great deal of market confidence, especially as the market ushers in a new week for worldwide trade and U.S. policy.
The extension of the tariff deadline to August 1 has reduced short-term fears and encouraged a bullish outlook among analysts and investors.
If the momentum continues, Bitcoin could breach its previous record and enter a new phase of growth.
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