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Bitcoin Price Action is Boosted by the Fed’s Rate Pause

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Stratum Reference Implementation Launches SRI 100 To Enhance Bitcoin Mining.webp
Stratum Reference Implementation Launches SRI 100 To Enhance Bitcoin Mining.webp

The following are key points.

  • New analysis suggests that Bitcoin bulls can benefit from the Fed’s decision not to raise interest rates given its historical tendency, says the new study.

  • The potential for upside movement could be boosted by falling Binance open interests and BTC/USD making lower lows.

  • Analysis of order book liquidity predicts a squeeze for $106,000.

BitcoinBTCThe arrow should indicate “bullish tendencies” As the dust settles, the Federal Reserve freezes its interest rates.

One of the “QuicktakeCryptoQuant’s onchain analysis platform, CryptoQuant, posted a series of blog posts in June that saw BTC prices moving higher.

Bitcoin is a beneficiary of Fed policy and Binance OI trend

CryptoQuant thinks that 2025 will be an especially bullish environment for Bitcoin.

Officials voted unanimously Markets expect the Federal Open Market Committee to maintain rates at their current level during its June 18 meeting. only seeing a shift in Q3.

“Following the Federal Reserve’s decision to hold interest rates steady during its most recent policy meeting, the Bitcoin market has shown a complex set of signals, especially on Binance,” contributor Amr Taha summarized.

Taha drew attention to the divergence in BTC’s price and Binance open interest (OI) — the total number of derivatives contracts held by traders, both long and short.

“As seen in the Binance BTC Price & Open Interest Change chart, BTC has formed consistent equal lows slightly above $104,000. This level has acted as a strong demand zone, repeatedly absorbing sell pressure,” He continued. 

“However, in contrast, the open interest on Binance has recorded a series of lower lows, showing progressive deleveraging across the derivatives market.”

Source: CryptoQuant. Source: CryptoQuant

Bitcoin’s bull case is typically boosted by a combination of a declining OI and sluggish Fed policy.

“The timing of this cleanup coincides with the Fed’s decision to pause rate hikes — a macroeconomic signal that often acts as a tailwind for risk-on assets like Bitcoin,” Quicktake is concluded. 

“Historically, BTC has shown bullish tendencies following rate stabilization, especially when paired with signs of liquidation exhaustion and fading open interest.”

Binance BTC liquidation data (screenshot). Source: CoinGlass

BTC Shorts Tease $106,000 Short Squeeze

BTC/USD is also continuing to range in the bullish short-term price predictions.

Related: Bitcoin price top metric with 10-year record stays ‘neutral’ at $112K

CoinGlass is a resource for monitoring. The chances of you getting a CoinGlass are very high. “short squeeze” Ask liquidity is increasing and has risen to around $106,000.

Separate analyses of liquidity warned that an excursion below $104,000 might be problematic. result in a “rug pull” Order book spoofing is a great way to fool people.

CoinGlass Derivatives Risk IndexCDRI( ), on the other hand, circled neutral terrain that same day, signaling a steadily increasing risk of liquidation.

CoinGlass Derivatives Risk Index (screenshot). Source: CoinGlass

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.