Bitcoin remains strong: Circle is booming despite geopolitical uncertainties!

Bitcoin remains strong: Circle is booming despite geopolitical uncertainties!

On June 19, 2025, the Bitcoin price and that of the top 10 cryptocurrencies remain almost unchanged compared to the previous day. How BTC Echo reported, Solana posted the largest loss among the leading cryptocurrencies with a decline of 1.6 percent. Among the top 100 cryptocurrencies, Hyperliquid (HYPE) is suffering the most, recording a loss of 6.4 percent, while the Layer 1 blockchain Kaia achieves a notable gain of over 7 percent.

The markets are currently dominated by geopolitical risks and the interest rate policy of the US Federal Reserve. Recent developments include a report that President Trump has authorized a military attack on Iran but is awaiting a halt to Iran's nuclear program. In this tense situation, the Iranian leadership is open to talks with the USA, which gives new hope for de-escalation.

An eye on US monetary policy

Amid these uncertainties, Fed Chairman Jerome Powell gave an outlook on monetary policy in the USA on the occasion of the key interest rate decision. Investors are hoping for monetary easing, especially after inflation was milder than expected. The latest quarterly outlook from FOMC members sees two interest rate cuts as appropriate, but lowers GDP expectations to 1.4 percent and raises inflation expectations to 3 percent. Analysts suggest the Fed is bracing for stagflation as Powell reiterates the central bank's wait-and-see stance.

Despite Powell's hawkish statements, the crypto market remains stable. The start of trading in the US at 3:30 p.m. will be crucial to see how markets react to the session. There is a positive development in Circle, whose share price rises by 33 percent, drawing the interest of traditional financial investors to the crypto market.

Debt crisis and Bitcoin as a safety net

As the U.S. government continues to grapple with a worrisome budget deficit of over $6 trillion, President Trump's proposed legislation, the Big Beautiful Bill, could increase the U.S. debt by over $2.4 trillion. This move could accelerate an impending debt crisis and fuel inflation. Cointelegraph highlights that Bitcoin is seen as monetary insurance against the debt crisis. In such a crisis, the value of nominal government bonds and cash could erode.

Inflation rates and the devaluation of the dollar are currently the most pressing economic problems. Bitcoin could serve as a hedge here, particularly in the form of self-custody, as custody platforms may not survive a long period of financial repression. The yield on 10-year government bonds is now over 4.35%, which further unsettles investors.

In the current situation, where there are no credible plans to reverse the spiral of budget deficits and debt, Bitcoin self-custody could be essential to escape the risks of custodial services. It is an exciting but challenging moment for financial markets and investors.