Bitcoin Holds Firm at $105K Post-Fed: Bulls Eye Next Breakout

Bitcoin shrugs off macro turbulence—trading steady near the $105K zone after Powell's latest move. No surprises, no panic. Just crypto doing what it does best: ignoring traditional finance's theater.

Fed plays checkers while BTC plays 4D chess. The 'digital gold' narrative gets another stress test—and passes with boring efficiency. Meanwhile, Wall Street still can't decide if it's FOMO or genuine conviction driving institutional flows.

Next targets? $120K looks increasingly like a pit stop rather than a destination. Though let's be real—if past cycles taught us anything, it's that Bitcoin loves to humble both permabears and moonboys alike. The only certainty? Volatility isn't going anywhere—much like your bank's 0.5% 'high-yield' savings account.

Fed Maintains Current Rates, Markets React With Caution

On June 20, the Federal Reserve chose to hold interest rates within the range of 4.25% to 4.5%, maintaining its cautious stance in response to ongoing inflation concerns. While recent data suggests inflation is slowly easing, the Fed made it clear it WOULD rather wait for sustained progress before taking the next step.

The move was broadly expected, but its impact on markets was still noticeable. Bitcoin [BTC], often considered a high-risk asset, initially moved slightly upward but quickly settled back into its tight range. At the time of writing, BTC was trading around $104,794, showing little momentum in either direction.

The muted response highlights the market’s current state: investors are watching, not acting. With the Fed signaling a wait-and-see approach, crypto traders are doing the same.

ETF Inflows Offer a Glimmer of Confidence

Despite the subdued price action, inflows into Bitcoin spot ETFs continue to show strength. According to data from Farside Investors, Bitcoin ETFs attracted $388.3 million in new investments over the last week, while ethereum ETFs saw $19.1 million in inflows.

These figures point to continued interest from institutional players who see value in long-term exposure to crypto, even as short-term trends remain unclear. The ETF inflows also suggest that while volatility may be subdued now, investors are preparing for eventual movement — potentially to the upside.

This steady capital FLOW could play a key role in stabilizing Bitcoin’s current support levels and possibly providing the liquidity needed for a breakout if bullish sentiment returns.

Trump’s Remarks Add Political Pressure to the Mix

In a surprising twist, former President Donald TRUMP reignited criticism of Federal Reserve Chair Jerome Powell just hours before the Fed’s policy statement. Labeling Powell “stupid,” Trump called for more aggressive rate cuts, citing the European Central Bank’s recent actions as justification.

While Trump’s comments don’t directly impact monetary policy, they add political noise to an already uncertain environment. Such remarks can influence sentiment, especially among retail traders who may see them as a sign of instability or looming policy shifts.

Markets, however, largely shrugged off the political commentary, continuing to focus on the Fed’s economic outlook and its impact on liquidity and risk assets.

Inflation Slows, But Fed Holds Its Ground

Data released earlier this month showed signs of progress on the inflation front. The Consumer Price Index (CPI) ROSE by just 0.1% in May, bringing the annual inflation rate down to 2.4%. Meanwhile, April’s Personal Consumption Expenditures (PCE) — the Fed’s preferred inflation measure — also showed minimal growth.

Despite these improvements, the Fed remains cautious. Powell stressed that while the economy remains strong, including a solid labor market and consistent growth, uncertainties persist due to global pressures and prior policy decisions.

This conservative approach suggests that rate cuts, if they come at all, may not arrive until late 2025. That could mean more months of sideways movement in both traditional and crypto markets as investors await clearer signals.

On-Chain Metrics Show Mixed Signals

From an on-chain perspective, there’s growing concern that bearish sentiment could take hold. Data from IntoTheBlock shows more bitcoin wallet addresses are showing signs of bearish behavior, with fewer wallets accumulating compared to earlier in the year.

At the same time, geopolitical tensions — particularly those involving the Middle East and new tariff threats from the U.S. — have contributed to broader market uncertainty. These factors have slowed momentum not only for Bitcoin but for the wider altcoin market as well.

Although the fundamentals behind Bitcoin remain strong, these external stressors could delay the next MOVE upward, or worse, trigger a correction.

Key Levels to Watch in the Coming Days

The $105,000 level remains a key psychological and technical support for Bitcoin. If this zone is breached, the next strong support lies around $100,000, which could act as a last line of defense for bulls. A drop below this level would likely shift the market narrative from “consolidation” to “correction,” prompting additional selling.

On the flip side, a break above $108,000–$110,000, especially with volume and ETF inflows intact, could push BTC back toward its previous high of $111,000 and potentially beyond. For now, however, momentum remains neutral, and traders appear hesitant to make bold moves.

Outlook: A Waiting Game for Crypto Markets

Bitcoin’s current price action is a reflection of broader market indecision. With the Fed holding rates steady, ETF flows offering subtle optimism, and global headlines providing a dose of caution, BTC appears caught in the middle.

What happens next will depend heavily on how macroeconomic trends evolve and whether investors regain confidence in risk assets. Until then, expect more sideways trading, with occasional spikes triggered by geopolitical or regulatory news.

For traders and long-term holders alike, patience is now the name of the game.