Bitcoin Price Analysis: BTC Price Action Remains Flat As Fed Keeps Interest Rates Steady

Bitcoin (BTC) remains pinned below $105,000 since Tuesday as growing macroeconomic uncertainty and escalating geopolitical tensions seem to have taken the wind out of the flagship cryptocurrency’s sails. 

BTC has struggled to gain momentum since dropping below $110,000 on Wednesday (June 11). It plunged to a low of $102,854 before recovering and moving to current levels, marginally down over the past 24 hours as it struggles to reclaim $105,000. 

Trump Furious At Fed Rate Cut Stance 

US President Donald Trump launched a scathing attack on Federal Reserve Chair Jerome Powell for refusing to cut interest rates. The Fed left interest rates unchanged again, prompting Trump to take to Truth Social and criticize Fed Chair Jerome Powell. Trump posted, 

“Too Late—Powell is the WORST. A real dummy who’s costing America $Billions!”

He also included a link to an article published on the National Mortgage News site. The article quoted an analysis from Fannie Mae’s and Freddie Mac’s regulator, who called for Powell to step down if he kept interest rates steady. The decision left Bitcoin at a standstill. BTC has hovered around $104,000-$105,000 since the Fed voted to maintain its current monetary policy in June. Analysts believe the Fed’s cautionary stance has triggered a pause in Bitcoin’s price action, much to the dismay of traders. 

Fed Chair Jerome Powell justified keeping interest rates steady, adding that “policymakers are well-positioned to wait” before moving further on interest rates. 

“We have to learn more about tariffs. I don’t know what the right way for us to react will be. I think it’s hard to know with any confidence how we should react until we see the size of the effects.”

Federal Reserve Keeps Interest Rates Unchanged 

The Federal Reserve kept interest rates steady, between 4.25% and 4.50%, expecting elevated inflation and slowed economic growth. However, the Fed expects to make two rate cuts later this year. However, it removed one reduction for 2026 and 2027, putting the expected future rate cuts at four or one percentage point. The Reserve's “dot plot” indicated continued uncertainty about future rate cuts. Each dot represents an official’s expectations for rates. Seven of the nineteen participants indicated they did not want any cuts this year. However, the Committee unanimously approved the policy statement. 

The FOMC stated, 

“Uncertainty about the economic outlook has diminished but remains elevated. The Committee is attentive to the risks to both sides of its dual mandate.”

Meanwhile, Federal Reserve Chair Jerome Powell indicated there was time to wait for more clarity, stating, 

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policies.”

Spot Bitcoin ETFs Continue Inflow Streak 

US-based spot Bitcoin ETFs continued their inflow streak, recording their eighth day of inflows despite Middle East tensions. The ETFs recorded $388.3 million in inflows on Wednesday, as institutional interest shows no sign of waning. According to data from Farside, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Fidelity Wise Origin Bitcoin Trust (FBTC), led with $278.9 million and $104.4 million in inflows. The strong inflows reiterate the fact that institutional interest and confidence in BTC remains strong. Crypto analytics platform Santiment stated, 

“Despite the initial panic, Bitcoin has remained in the $104K-$105K range, aided by consistent ETF inflows and a lack of follow-through in military actions, mirroring the typical ‘risk-off, then stabilize’ pattern seen in previous geopolitical crises.”

Bitcoin (BTC) Price Analysis 

Bitcoin (BTC) is struggling to regain momentum as resistance around $105,000-$106,000 blocks a move past $110,000. Rising macroeconomic uncertainty and escalating Middle East tensions have pushed investors into a “wait-and-watch” approach, thanks to market uncertainty. As a result, BTC’s bull run has hit pause, with the $112,000 level proving to be a stubborn barrier. 

Rising geopolitical tensions, including the Israel-Iran conflict, have created a risk-off sentiment among investors. As a result, they have pivoted to traditional safe-haven assets like gold and US Treasurys, with gold nearing all-time highs this week. BTC and other risk assets have faced reduced demand in recent sessions, with the flagship cryptocurrency dropping nearly 4% since Israel’s first attack on Iran. The Nobitex hack added to the pressure, further weighing down the price. The Fed’s decision to leave interest rates unchanged has also dampened momentum. The Fed’s cautious approach is due to persistent inflation and concerns about tariff-induced pressures under the Trump administration. These concerns have also reduced expectations of a Fed rate cut in 2025. 

The Fed’s restrictive monetary policy strengthens the US Dollar and pressures risk assets like BTC. Market watchers believe the circumstances in which the Fed is fighting inflation are exceptional. QCP Capital stated in a note, 

“This is no ordinary inflation fight. Our base case is that the Fed may adopt a more cautious tone in its September, potentially indicating a single rate cut for 2025, in contrast to market pricing. Such a revision would likely pressure risk assets, including Bitcoin and broader digital assets, as liquidity expectations are pared back.”

BTC started the previous week on a bullish note, rising over 4% to surge past the 20-day SMA and $110,000 and settle at $110,247. The price fell to an intraday low of $108,325 but recovered to reclaim $110,000 and settle at $110,258. BTC lost momentum on Wednesday and fell 1.43% to $108,686. Bearish sentiment intensified on Thursday as the price fell nearly 3%, slipping below the 20-day SMA and settling at $105,826. BTC plunged to an intraday low of $102,854 on Friday as sellers attempted to overwhelm buyers. However, it recovered from this level to register a marginal increase, reclaim $106,000, and settle at $106,106.

Source: TradingView

Price action was mixed over the weekend as BTC dropped nearly 1% on Saturday before registering a marginal increase on Sunday to settle at $105,561. BTC raced to an intraday high of $108,939 on Monday as it started the week on a bullish note. However, it could not stay at this level and fell to $106,808, ultimately registering an increase of 1.18%. Selling pressure returned on Tuesday as markets turned bearish. As a result, the price fell over 2%, slipping below $105,000 and settling at $104,519. BTC recovered on Wednesday, registering a marginal increase and moving to $104,884. The current session sees BTC down 0.50%, trading around $104,358. If BTC slips below $103,000, it could drop to $100,000 or lower. On the other hand, if buyers regain momentum and push above $106,000, BTC could move to $110,000.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.