The cryptocurrency market experienced a pause in momentum as Bitcoin (BTC) dipped below $105,500 on June 18, 2025, ahead of the U.S. Federal Reserve’s interest rate decision and weekly jobless claims data. This followed a brief peak at $107,253 earlier in the day, with the decline attributed to heightened geopolitical tensions in the Middle East, particularly the Israel-Iran conflict discussed at the G7 Summit in Kananaskis, Canada (June 15-17, 2025). Analysts noted that BTC was trading sideways, with key support at $102,200 and resistance at $106,500-$107,700. A dovish Federal Open Market Committee (FOMC) outcome could push BTC above $107,700, while failure to hold support might lead to further consolidation.
The passage of the GENIUS Act by the U.S. Senate, establishing a regulatory framework for stablecoins, was seen as a positive long-term development, enhancing transparency and fostering institutional adoption of compliant stablecoins like USDC and PayPal USD. This could reshape the stablecoin market, potentially reducing Tether’s dominance. Ethereum (ETH) remained range-bound near $2,530, caught between $2,450 and $2,575.
Posts on X reflected cautious optimism, with ETF inflows of $1.7 billion over the past week and institutional buying from firms like MicroStrategy cushioning the market. However, technical indicators like a negative MACD and overbought CRSI suggested short-term bearish pressure, though a dovish Fed surprise could spark a rebound.
The Fed’s decision, expected to maintain rates at 4.25%-4.50%, and Chair Jerome Powell’s tone were critical, as markets priced in a 99.8% chance of no rate cut, with focus shifting to upcoming Producer Price Index (PPI) data. Geopolitical risks and tariff uncertainties, including Trump’s proposed trade policies, added to market caution.