Bitcoin (BTC) has revived to $105,000 following the Wall Street open, thanks to news of potential dialogue between Iran and the US, FOMC rate discussions, and market volatility.
Trump and the Fed Summit
Bitcoin (BTC) returned to $105,000 after US President Donald Trump announced that Iran "had reached out" to the US for dialogue. The regional conflict remains highly sensitive for the market. Trump also criticized Fed Chair Jerome Powell, calling him a "stupid person." This statement came just ahead of the FOMC meeting where potential changes to interest rates are being discussed.
Bitcoin Market and Liquidity
Data shows that BTC/USD has shifted momentum after hitting a low of $103,857 on Bitstamp. The market is observing liquidity behavior, with expectations of a potential short squeeze. Order books indicate accumulated shorts, which could be a catalyst for price uplift. Popular trader Skew noted that current market conditions present opportunities for growth.
Future Outlook
Discussions among experts indicate that markets expect the Fed to hold interest rates steady for now but convey a hawkish stance regarding inflation risks. Potential changes in Fed policy could impact risk assets, including Bitcoin. Trump reiterated his demand for rate cuts, which may influence market dynamics.
Thus, the current situation surrounding Bitcoin and macroeconomic indicators, including Trump's comments on dialogue with Iran and expectations from the Fed meeting, creates an unclear yet intriguing picture for investors and traders.
