Bitcoin Wobbles as Fed Holds Steady, Middle East Tensions Mount
Bitcoin’s Price Under Pressure
Bitcoin’s price recently failed to surpass $110,000, as the cryptocurrency market reacts to global tensions. This comes amid uncertainty surrounding the Federal Reserve’s upcoming interest rate decision and escalating unrest in the Middle East. The digital currency has faced resistance, unable to break through the $112,000 mark since June 5th.
Interest Rates and Market Reaction
The Federal Open Market Committee (FOMC) is meeting this week, and decisions on interest rates are highly anticipated. Market analysts suggest that any bearish impacts from maintaining current rates may already be considered. The focus is shifting to the statements from the Federal Reserve Chair, Jerome Powell, for clues about future policy.
CME Group’s FedWatch tool estimates a 99.9% likelihood that interest rates will remain unchanged, remaining between 4.25% and 4.50%. This leaves only a 0.1% chance of a rate cut.
The market is closely watching the Federal Reserve Chair, Jerome Powell, for any shifts in tone during the FOMC press conference. There is pressure from U.S. President Donald Trump to lower interest rates.
“If Powell is moderate, that will mean an additional impulse for the bullies,”
—Swissblock, Private Heritage Manager
The financing rates for Bitcoin became negative after the rising tensions between Israel and Iran, leading to increased chances of a price decline if the overall market sentiment changes. The perpetual financing rates of Bitcoin futures also became negative.
Bitcoin’s Price Levels
To sustain its upward trajectory, Bitcoin must convert the $112,000 all-time high into a support level. First, it must surpass the $108,000 psychological level. A significant supply zone is between $109,000 and $110,500 that the bulls must overcome.
The cryptocurrency company QCP stated that Bitcoin’s price remains resistant, supported by ongoing institutional accumulation, citing continued purchases from Metaplanet and Strategy, alongside Bitcoin ETF entries.
“The market seems to have regained balance, especially after the BTC was maintained above the key psychological threshold of the USD 100,000 despite the initial impact.”
—QCP, Cryptocurrency Company
On the downside, there is a concentration of purchase orders around $100,000. The next significant support level is between $92,000 and $93,000. One financial analyst recently predicted Bitcoin could reach $115,000, if macroeconomic conditions improve, indicating a bullish outlook (CoinTelegraph 2025).
