With macro uncertainty easing and ETF-driven inflows rising, Bitcoin could build momentum toward the local highs
The U.S. Federal Reserve’s decision to keep interest rates unchanged in June 2025 has sparked renewed interest in how macroeconomic policy affects the crypto markets. For Bitcoin, the stable interest rates could serve as a bullish catalyst, especially as investor sentiment shifts towards alternative stores of value. This could be a bullish signal for the BTC price rally, which is striving hard to break the barrier at $106,800.
The market analysts were sure of a rate cut today, but the US Federal Reserve kept the interest rates unchanged. By pausing the rate hikes, the Fed is signaling that inflation may be stabilizing and economic conditions do not require tight monetary policy. These decisions reduce market uncertainty and encourage capital flow into stocks and cryptos, specifically Bitcoin.
Meanwhile, President Trump called the FED Chair, Jerome Powell, ‘Stupid’ for not lowering the rates. He said that the FED has kept the borrowing cost too high, which has been costing America billions of dollars. Moreover, the President believes the rates should have been two interest points lower. The FED currently holds interest rates between the range of 4.25% and 4.50%. While Bitcoin has held stable since the early trading hours, it is now experiencing a sell-off.
Markets remain on edge as Powell’s cautious tone keeps rate cut hopes in check — expectations are locked in for no move. However, the traders are glued to micro-signals in Fed projections for any dovish tilt. Bitcoin and altcoins chopped on FOMC week, with volumes spiking around Powell’s Q&A and macro narrative shifts.
Besides, Bitcoin price remains in an indecisive spot after the FED’s interest rate tone. Powell’s confidence in macro strength is fueling bullish sentiment, but the technicians flash caution. ETF inflow and supply crunch are supporting the broader uptrend, but the short-term chart shows an oversold RSI and a bearish MACD cross.
Market participants need to watch $102K and $104K closely; holding this support could set up for a sharp recovery if macro signals align. Bulls are eyeing institutional moves and on-chain growth, while bears highlight short-term volatility and macro uncertainty.
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