Bitcoin expanded its gains for the fourth straight session, trading above $107,000, or just 4% off recent record highs amid strong investments into bitcoin ETFs, amounting to $547 million on Wednesday.

Strong Institutional Demand

Bitcoin is buoyed by rapidly increasing institutional demand, with SoSoValue data showing net investments into bitcoin sport ETFs at $547 million, with total weekly inflows amounting to $1.49 billion so far.

Otherwise, major corporations continue to add to their bitcoin holdings, with Japan’s MetaPlanet adding 1234 units on Thursday, raising its total holdings to 12,345 units.

PtoCap BTC also bought 1208 bitcoins, raising total holdings to 4932 units.

Bitcoin recently hit a low of $98,200 on Sunday but avoided closing below $100,000, with the currency regaining its strength on Monday, thus recovering until $107,000.

An extended rally would bring the price to near the recent record highs at $112,000.

RSI technical analysis points to upward momentum, which is  confirmed with the MACD.

Some analysts expect bitcoin to rise between 50% and 80% by October, as it might repeat its market structure from 2020, with a stabilization period followed by a $13,000 to a $40,000 surge.

The US dollar fell to three-year lows after reports that US President Donald Trump is considering nominating Fed Chair Jerome Powell’s successor early as a way to undermine him.

The dollar is down 0.6% against a basket of major rivals, hitting early 2022 lows.

The dollar continues to sustain heavy losses this year as investors lose confidence in the US dollar due to Trump’s trade wars and the government’s yawning budget deficit. 

Trump Versus Powell 

Trump once again criticized Powell for refusing to cut interest rates, and asserting Powell will leave his position soon.

Powell told the Senate of the need to be cautious with monetary policies, as Trump’s tariffs represent a risk to inflation.

Powell warned that while Trump’s tariffs could cause a one-time hike in prices, the risk of sustained inflation is big enough to force the Fed into more caution about rate cuts.

The Wall Street Journal reports that Trump is considering choosing and announcing his successor by September or October as a way to undermine him.

Euro and Sterling Surge

The euro is up 0.7% today against the greenback to $1.174, the best since September 2021, after NATO allies vowed to raise defense spending to 5% of total GDP by 2035.

Sterling also rallied by a similar percentage to $1.376.

The dollar index is down 10% so far this year, but it faces even more pressures as the Federal Reserve gears up towards multiple interest rate cuts this year.

Fed official Michelle Bowman said on Monday that the time for an interest rate cut is approaching amid potential risks to the labor market. 

The odds of a Fed 0.25% rate cut at the July meeting rose from 15% to 23% according to the Fedwatch tool.

The odds of a Fed September rate cut rose from 68% to 78%. 

The bonds market is mostly stable, with two-year US treasury yields down 0.01% to 3.77%.

Gold prices rose in European trade on Thursday on track for the second straight profit away from recent two-week lows as the US dollar swoons against major rivals. 

It comes amid renewed concerns about the independence of the Federal Reserve after renewed attacks by US President Donald Trump against Fed Chair Jerome Powell.

Prices

Gold prices rose 0.35% today to $3343 an ounce, with a session-low at $3329.

On Wednesday, gold rose 0.25%, the first profit in four days away from a two-week trough at $3295.

US Dollar

The dollar index fell 0.45% on Thursday, sharpening losses for the fourth straight session and plumbing three-year lows at 97.27 against a basket of major rivals.

A weaker dollar makes the greenback-denominated gold futures cheaper to holders of other currencies.

Trump attacks Powell

Trump once again criticized Powell for refusing to cut interest rates, and asserting Powell will leave his position soon.

Powell told the Senate of the need to be cautious with monetary policies, as Trump’s tariffs represent a risk to inflation.

Powell warned that while Trump’s tariffs could cause a one-time hike in prices, the risk of sustained inflation is big enough to force the Fed into more caution about rate cuts.

The Wall Street Journal reports that Trump is considering choosing and announcing his successor by September or October as a way to undermine him.

US Rates

Fed official Michelle Bowman said on Monday that the time for an interest rate cut is approaching amid potential risks to the labor market. 

The odds of a Fed 0.25% rate cut at the July meeting rose from 15% to 23% according to the Fedwatch tool.

The odds of a Fed September rate cut rose from 68% to 78%. 

SPDR

Gold holdings at the SPDR Gold Trust fell by 2.29 tons yesterday to a total of 953.39 tons.

The euro rose in European trade on Thursday against a basket of major rivals, expanding gains for the sixth straight session against the US dollar and hitting a four-year high, and surpassing the $1.17 barrier for the first time since 2021 on strong demand. 

It comes amid renewed concerns about the independence of the Federal Reserve after renewed attacks by US President Donald Trump against Fed Chair Jerome Powell.

The odds of an ECB interest rate cut in July also dropped as traders await more clues on the future path of policy easing in Europe this year.

The Price

The EUR/USD price rose 0.5% today to $1.1717, the highest since 2021, with a session-low at $1.1653.

The euro closed up 0.45% on Wednesday, the fifth daily profit in a row, and the longest such streak of daily gains in 2025 following the Iran-Israel ceasefire.

The Dollar

The dollar index fell 0.45% on Thursday and expanded the losses for the fourth straight session, plumbing three-year lows at 97.27 against a basket of major rivals.

The decline comes amid renewed concerns about US financial stability as Trump attacks Powell once more.

Trump attacks Powell

Trump once again criticized Powell for refusing to cut interest rates, and asserting Powell will leave his position soon.

Powell told the Senate of the need to be cautious with monetary policies, as Trump’s tariffs represent a risk to inflation.

The Wall Street Journal reports that Trump is considering choosing and announcing his successor by September or October as a way to undermine him.

European Rates

ECB President Christine Lagarde hinted at the possible end of the current cycle of policy easing, which was in response to a combined shock such as the Covid 19 pandemic, the Ukrainian war, and the energy crisis.

According to a Reuters source, most ECB members now aim at holding interest rates unchanged in July, with the global markets now expecting just an additional 25 basis points of rate cuts by the end of the year. 

The odds of a 0.25% ECB rate cut in July now stood below 30%, with traders awaiting more eurozone data and remarks by ECB officials to gather more clues.