On June 19, 2025, Bitcoin's price fell below $104,000 following the Federal Reserve's decision to hold interest rates at 4.25%-4.5%, significantly impacting market sentiment.
Fed's Decision and Its Consequences
The Federal Reserve, led by Jerome Powell, maintained the benchmark interest rate between 4.25% and 4.5%. This decision negatively impacted cryptocurrency prices, with Bitcoin dropping to approximately $103,910 on exchanges like Binance. Historical analysis indicates that such economic caution often heightens bearish pressure on risk assets.
Crypto Market Under Pressure
The immediate fallout affects not only Bitcoin but also correlated cryptocurrencies, including Ethereum, as investors reassess their portfolios. The denser liquidity pocket between $102,000 and $104,000 becomes a focal point, while analysts warn of potential volatility if $98,000 is breached.
Future of Bitcoin and Support Levels
Market dynamics are reminiscent of prior instances where monetary policy changes led to significant crypto market fluctuations. Experts note the critical importance of support resilience. Historical data reveals technical patterns, such as Bollinger Bands indicating potential future volatility.
The current scenario in the cryptocurrency market, driven by the Fed's decision, underscores the importance of monitoring key support levels for Bitcoin and its impact on other crypto assets.
