Bitcoin continues to show its resilience, with a strong rebound coming after a recent dip due to rising geopolitical tensions. Meanwhile, bitcoin’s price has rocketed back, approaching its all-time high, as speculative investors expect a change in Federal Reserve policy. Or perhaps more aptly, this recovery signals Bitcoin’s growing acceptance as a legitimate asset to have in everybody’s investment portfolio.

Bitcoin’s value has exploded in the past year. Recent surges have pushed it near its all-time high of about $112,000. After falling under $100,000 this last weekend, the price of bitcoin has rallied back to above $107,000.

Bitcoin’s price has surged spectacularly. This jump came after a major turn up in the Israel-Iran conflict, which at first sent prices crashing down in anticipation of a broader catastrophe. And lo, the cryptocurrency has staged a phenomenal V-shaped recovery! It rocketed back up over $105,000 in under 48 hours after it fell into the nineties.

This rapid recovery speaks to bitcoin’s growing liquidity and its early maturity of being in more mainstream portfolios. Market analysts are anxiously looking to the Federal Reserve, as any interest rate cuts would have the effect of stoking bitcoin’s price surge even more.

With inflation cooling, the Federal Reserve seems to be waiting for the right moment to begin cutting interest rates. Market forecasts immediately indicated a 22% chance of a cut in July, a stunning increase from just 10% a week ago. That anticipation is fueled by a confluence of economic factors and political pressure.

Such cuts would follow intense pressure from former President Donald Trump, who has openly advocated for the Federal Reserve to undertake severe rate cuts.

"save the U.S. more than $800 billion per year,” - Donald Trump

Recently, Federal Reserve Chair Jerome Powell has expressed worry about inflation increases resulting from Trump’s tariffs. He suggests at least a "wait-and-see" approach to doing anything with interest rates.

Despite Powell's concerns, some policymakers, like Waller, suggest that Trump's tariffs may not significantly impact inflation. Waller thinks that this raises the possibility of interest rate cuts as soon as July.

"If you’re starting to worry about the downside risk to the labor market, move now, don’t wait," - Christopher Waller [www.cnbc.com]

The recent rally has emboldened bitcoin bulls, who have remained optimistic despite the geopolitical unrest of the past two weeks. Bitcoin’s price action over this period has sparked controversy about whether Bitcoin should be considered a safe-haven asset.

"It is time to consider adjusting the policy rate," - Michelle Bowman [www.reuters.com]

David Morrison, senior market analyst at Trade Nation, reiterated the value of upcoming economic indicators.

"Bitcoin’s status as a safe-haven asset is still taking shape, but recent signals suggest it’s edging closer,” - Gadi Chait

David Morrison, a senior market analyst at Trade Nation, also highlighted the importance of upcoming economic indicators.

"Aside from any geopolitical updates, today’s key event will be Fed chair Jerome Powell’s testimony in Washington," - David Morrison