Bitcoin Resists Fed Decision and Flirts with $100,000

Despite the unchanged interest rate in the US, Bitcoin clings to $97,000 and keeps alive the hope of reaching the coveted six-figure mark.

The price of Bitcoin (BTC) closed the day with a slight increase of 0.20%, standing at $97,030, after a session marked by anticipation of the announcement of the new interest rate by the United States Federal Reserve (Fed). The main cryptocurrency experienced slight fluctuations, reaching lows of $95,784 just as central bank chairman Jerome Powell confirmed that the rate would remain unchanged at 4.50 percent.

This performance has opened the door to the next psychological resistance zone, located at the $100,000 mark. / TradingView

Powell Remains Calm: Inflation and Labor Market in Focus

In his press conference, Jerome Powell explained that the Fed is waiting to assess the inflationary effects of the tariffs imposed by the US government. He emphasized that the labor market continues to show strength and that the 2% annual inflation target has not yet been reached. These were, according to Powell, the primary reasons for keeping the interest rate unchanged until the next announcement, scheduled in 41 days. He also ruled out any emergency rate cuts.

The Fed's official statement supported Powell's remarks, noting that economic activity continues to expand at a solid pace and that the unemployment rate has stabilized at low levels. However, inflation remains at "somewhat elevated" levels. The Committee reaffirmed its commitment to achieving maximum employment and 2% inflation over the long term, recognizing the increasing uncertainty in the economic outlook and the risks to both employment and inflation. In line with these objectives, the Fed decided to maintain the target range for the federal funds rate between 4.25% and 4.50% and will continue to reduce its holdings of Treasury securities and agency debt.

Fed Funds Futures Point to Stable Rates in June

The federal funds futures market appears aligned with the Fed's decision, as bets for the upcoming announcement on June 18 place a 79.9% probability that the interest rate will remain unchanged at 4.50%. This expectation of short-term rate stability could be contributing to the relative calm observed in the Bitcoin price.

Bitcoin Acts as a Safe Haven in a Weak Dollar

Despite the absence of an interest rate cut, Bitcoin has maintained its upward movement, acting as a safe haven asset amid the persistent weakness of the US dollar. The leading cryptocurrency managed to hold above the fixed support of $95,000, consolidating a clear bullish sentiment by trading above the 50- and 200-period exponential moving averages.

This performance has opened the door to the next psychological resistance zone, located at the $100,000 mark. Trading volume during the day matched the average of the last 25 days, suggesting moderate support from buyers, who appear to be acting cautiously. A definitive break above the $100,000 resistance could pave the way for Bitcoin to attempt new all-time highs in the coming weeks.

The Fed's decision to keep interest rates unchanged has failed to stem Bitcoin's bullish momentum, which remains firm near $97,000 and with its sights set on the coveted $100,000 barrier. The weak dollar and appetite for risky assets continue to favor the leading cryptocurrency, although the caution shown by buyers suggests that breaking through key resistance will require a stronger push. Investors will closely monitor the dollar's performance and upcoming Fed signals to determine if Bitcoin has the strength to conquer new territory.

Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Cryptocurrency trading is highly volatile and carries significant risks, including the total loss of your invested capital. Consult a financial advisor before making any investment decisions.