Bitcoin’s price experienced an upward surge following the Federal Open Market Committee’s (FOMC) decision to maintain interest rates within the 4.25% to 4.5% range, aligning with market expectations.
While Federal Reserve Chair Jerome Powell acknowledged that inflation remains “somewhat elevated,” the central bank opted for a cautious stance, keeping its future policy options open as it assesses economic conditions.
Initially, Bitcoin’s price mirrored declines seen in major indices like the S&P 500, Dow Jones, and Nasdaq (QQQ). However, it swiftly reversed course, reaching an intra-day peak of approximately $104,782. Despite this move, technical indicators suggest that the momentum could be short-lived. According to data from Velo.data, the price action was largely influenced by the futures market, where a notable increase in Bitcoin’s funding rate led to the liquidation of roughly $15 million in short positions within the last hour.
Although Bitcoin briefly touched the $104,000 to $106,000 resistance zone, the key factor for sustained growth remains a rise in spot market demand. A strong bullish trend would likely require an increase in margin longs, coupled with higher trading volumes, to push BTC above the $105,000 threshold.
As for Powell’s post-FOMC remarks, they largely met the market’s expectations. Noted economist and crypto analyst Alex Krüger characterized the press conference as “positive,” highlighting Powell’s optimism regarding both economic policy and overall financial stability.
“The FOMC statement omitted prior references to inflation progress, initially triggering a bear trap before the press conference,” Krüger pointed out.
Pear Protocol founder and former traditional finance trader HUF echoed similar sentiments, describing the meeting as “neutral.”
“It wasn’t particularly dovish or hawkish—just a balanced response. Some anticipated Powell to emphasize the Fed’s independence more, but he made it clear that removing the inflation progress statement wasn’t a signal of tightening. Ultimately, bears found little to hold onto, and bulls capitalized on the opportunity to squeeze aggressive short positions.”
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