Key Points:
Bitcoin (BTC) returned to $105,000 after the Wall Street opening on June 18, following reports that Iran had "contacted" the United States seeking dialogue.
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD reversed its downward trend after hitting a low of $103,857 on the Bitstamp exchange.
Bitcoin remains highly sensitive to developments in the Iran-Israel conflict, but is seeking relief from comments made by U.S. President Trump, who stated that Iran had reached out to him.
"I said, 'It's late already,'" Trump told reporters on the White House lawn, adding that he did not know how long the conflict would last.
The positive momentum in BTC prices is built on U.S. unemployment data, which came in largely as expected, avoiding further uncertainty regarding inflation.
However, hours before the Federal Reserve's decision on interest rates, concerns lingered over U.S. trade tariffs and the potential impact of Middle Eastern tensions on oil prices.
"First tariffs, now missiles. This is not a normal inflation battle," trading resource QCP Capital summarized in a recent announcement sent to Telegram channel subscribers that day.
"We expect the Fed to keep interest rates stable while adopting a hawkish tone, acknowledging the inflationary risks posed by geopolitical instability."
QCP warned that if the Fed reduces its forecast for interest rate cuts in 2025, "it could put pressure on risk assets, including Bitcoin and the broader digital assets, as liquidity expectations would be curtailed."
Trump reiterated existing calls for interest rate cuts, although the market believes cuts will not come until the third quarter.
"Tariffs brought in $88 billion; no inflation. I know what I'm doing," he said, calling Powell a "stupid person."
Among Bitcoin traders, there is anticipation of a potential short squeeze, with the market positioned for further declines.
"The market is currently reacting positively to headlines about easing tensions (we've seen that too)," noted prominent trader Skew in ongoing analysis on his X platform.
"The order book shows that buy-side depth is dominant—there are more buy orders than sell orders near the price. Perpetual contract positions are quite bearish, with all defensive positions piled up here."
Order book data from monitoring resource CoinGlass indicates that if a liquidity grab occurs, the area around $103,000 is particularly likely to become a short-term price magnet.
Another trader, TheKingfisher, described the short liquidation event as "loading," with sell orders positioned between the spot price and the current all-time high of $112,000.
$BTC shorts liquidations loading…Cleaning them up before the end of the week? What do you think anon? pic.twitter.com/CzXorcjmHa
This article does not contain investment advice or recommendations. Every investment and trading action involves risks, and readers should conduct their own research before making decisions.
Related: Data shows Bitcoin (BTC) prices remain stable and rebound amid regional conflicts
Original article: “Bitcoin (BTC) Eyes $105K Pre-FOMC, Trump Reveals Iran Asked for Dialogue”
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