The U.S. Federal Reserve has kept interest rates steady at 4.25% to 4.5%, marking the fourth consecutive hold, which has contributed to a mostly flat crypto market with Bitcoin (BTC) hovering near $104,000. Despite inflation data showing signs of easing, the Fed remains cautious due to lingering economic pressures, including geopolitical tensions and trade uncertainties.
Bitcoin's market activity is mixed: Spot Bitcoin ETFs attracted $388.3 million in inflows, indicating sustained institutional interest, while broader market sentiment remains cautious amid potential bearish trends suggested by on-chain data. Wallet addresses reflect more bearish than bullish activity, hinting at a possible price dip ahead.
Further analysis shows that BTC has established a strong demand zone in the mid-$100,000 range, repeatedly absorbing selling pressure and forming consistent support just above $104,000. Meanwhile, derivatives market data from Binance reveals progressive deleveraging, reducing risk and potentially stabilizing BTC's price. The $104,000 level has acted as a "liquidation magnet" cleansing the market of late long positions, indicating a market cleanup that coincides with the Fed’s rate decision.
Though some signs point to BTC preparing for a new upward rally—supported by indicators of liquidation exhaustion and fading open interest—trading volumes are at multi-year lows, which may dampen bullish momentum. This mixed scenario reflects both short-term uncertainties and potential groundwork for future gains.
Meanwhile, political tensions surfaced as former President Donald Trump publicly criticized Fed Chair Jerome Powell’s policies, adding a layer of market uncertainty. Overall, Bitcoin's trajectory remains uncertain, with investors watching for decisive moves amid a cautious environment.