The cryptocurrency market has had an exciting start this week. The combination of easing trade tensions, political drama, and optimism about rising inflation has led to a cryptocurrency rally, pushing Bitcoin to the brink of $110,000 and Dogecoin rising 6%, surpassing top tokens. But the biggest headline of the week comes from Elon Musk, whose new political party; the America Party, has officially endorsed Bitcoin and was publicly reprimanded by Donald Trump.
Bitcoin Rises as Tariff Delay Eases Pressure from Global Markets
Bitcoin's rise today is not just speculation. The catalyst comes from the clarity surrounding Trump's tariffs, which will now take effect on August 1 instead of July 9. This three-week window gives global trading partners more time to negotiate and eases concerns about economic disruption.
At the time of publishing this article, Bitcoin is trading at $108,851, according to CoinMarketcap, up 0.56% in 24 hours. This cryptocurrency rally is further fueled by hope that the US CPI data this weekend will show a declining inflation trend and thus the Fed will cut interest rates sooner.
The market is responding positively to both the macro flexibility from the tariff timeline and the renewed political interest in digital assets. This combination is helping to drive the rally.
Dogecoin Leads Large-Cap Companies in Growth with a 6% Increase
While Bitcoin is the main headline, Dogecoin (DOGE) has taken all the attention among large-cap coins, rising over 6% in 24 hours. This puts it ahead of major coins like Solana (+3%), XRP (+2.7%), and ADA (+2.3%).
Analysts suggest that the rise of Dogecoin is due to two factors: speculative inflows returning to meme coins and increasing chatter on social media surrounding Elon Musk's public political moves, particularly his support for Bitcoin.
Although DOGE was not mentioned in Musk's tweets, his name always draws attention. The cryptocurrency rally surrounding DOGE once again shows sentiment overwhelming fundamentals in the short term.
"Elon Musk's 'America Party' supports Bitcoin: 'Fiat is hopeless'"
To further excite the market, Elon Musk has officially confirmed through X that his new America Party will support Bitcoin. When a user asked if BTC would be part of this party, he responded:
"Fiat is hopeless, and it should be."
This tweet has gone viral and is now one of the most engaged cryptocurrency-related tweets of the day, also increasing public tension between Musk and Trump.
Over the weekend, Trump was reportedly critical of Musk for his recent criticism of the "Big Beautiful Bill" that Trump signed last week. On Truth Social, Trump called Musk a "saboteur" who has "gone off course" and mocked his plans for a third-party establishment. This political drama has fueled the cryptocurrency rally, giving traders another reason to return.
Metaplanet's Large Bitcoin Purchase Further Boosts Recovery
Another driver of sentiment comes from Metaplanet, a Japan-based tech company that announced it has purchased an additional 2,205 Bitcoin worth $240.8 million. This raises their total holdings to 15,555 BTC or $1.68 billion. Metaplanet is now one of the largest Bitcoin-holding companies, ahead of Tesla and Coinbase and only behind MicroStrategy and Block.
They have publicly declared their goal of holding 210,000 BTC by 2027, equivalent to 1% of the total Bitcoin supply. The purchases made by this organization are the silent backbone of the cryptocurrency bull run as they provide structural support for price increases.
Trump Escalates Trade War Against BRICS Nations
Meanwhile, reports have shared that Trump has also announced a 10% tax on countries he deems "supporting BRICS," stating they are "anti-American." The timing of this coincides with the BRICS summit in Brazil, where new members such as Indonesia, Egypt, Ethiopia, Iran, Saudi Arabia, and UAE have joined to challenge Western economic dominance.
While this announcement received a lot of attention, its immediate impact on the market was limited due to delayed tariffs and no further details provided.
Conclusion: Will the Cryptocurrency Bull Run Extend into July?
With this week's inflation data and rising geopolitical tensions, cryptocurrencies are preparing for volatility. However, indicators suggest that inflationary pressures may continue. The tariff delay until August 1 gives the market some breathing room.
Elon Musk's support for Bitcoin has boosted retail sentiment. The inflow from Metaplanet supports the long-term argument. Much will depend on the CPI report on Thursday. A soft print could increase the chances of a rate cut in Q3 and fuel this cryptocurrency rally.
