Bitcoin Closes May Strong, Eyes Fed Rate Decision
Key Takeaways
- Bitcoin (BTC) closed May with a record monthly close at USD 104,784.
- The market is eagerly awaiting the U.S. Federal Reserve’s interest rate decision.
- An interest rate move could set the direction for the crypto market.
- Short positions are increasing – a drop below USD 100,000 is possible.
Bitcoin in Wait-and-See Mode: Strong May, Hesitant June
Bitcoin kicked off June with momentum. May ended with a gain of 11.29% and the highest monthly close in BTC’s history. However, price movement at the start of the month remained subdued. The first trading day of June brought only a slight increase of 0.95% – an unusually calm start following a strong previous month.
Many traders are currently holding back. The reason: the upcoming interest rate decision by the U.S. Federal Reserve. This could significantly influence Bitcoin’s next moves.
Market Conditions: Fundamentals Favour BTC
A look at the market data paints a positive picture:
- BTC reserves on exchanges are at a multi-year low.
- Funding rates remain in positive territory.
- Liquidity is returning to the derivatives market.
- More and more BTC are being withdrawn from spot exchanges – a sign of long-term confidence.
All of this points to solid demand. But the decisive catalyst is still missing.
Fed Interest Rate Decision: Market Expects a Cut
The next speech by Fed Chair Jerome Powell is in the spotlight. Market participants are speculating on a rate cut. The probability of a cut to 4.25% to 4.50% recently rose to 98.7%.
One reason for this: inflation in the U.S. slightly declined to 2.3% in April – a 0.1% drop compared to March. While not a dramatic decrease, it may be enough to justify monetary easing.
You should read that too:
-
Asian Slots – The Best Asia-Themed Online Slot GamesReading time: ~ 3 minutes
-
Africa Slots: Best African-Themed Slot Machines
Reading time: ~ 3 minutes
-
Gold Slots – Best Slot Machines With a Gold Theme
Reading time: ~ 3 minutes
-
Low Wagering Casino Bonuses 2025
Reading time: ~ 3 minutes
-
Food and Drink Slots: The Best Slot Games Inspired by Culinary Delights
Reading time: ~ 3 minutes
Volatility Ahead: Short Positions on the Rise
Despite hopes for a rate cut, the market remains nervous. Particularly notable: on the Binance trading platform, long and short positions are currently evenly balanced – a sign of uncertainty.
In addition, larger short positions are forming. If the price falls to USD 103,881, long positions worth approximately USD 39.4 million could be liquidated. This could trigger a chain reaction.
Risk: Will the USD 100,000 Mark Hold?
The USD 100,000 level is currently seen as a psychological support. But it’s not set in stone. If the Fed does not cut rates as expected, confidence could weaken.
A drop below this threshold would not only break technical support levels but could also significantly dampen market sentiment. The result: a swift downward move is possible.
Our Assessment
The current situation is a textbook example of a tense market ahead of a major decision. Bitcoin shows strength in its fundamentals, but short-term expectations remain uncertain.
You should remain particularly vigilant during this phase. The coming days could be crucial – both for short-term traders and long-term investors. A clear direction will likely only emerge after the Fed meeting. Until then, the market remains vulnerable to sharp moves in either direction.
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 101914 |
| 24h % | -2.81 % |
| 7d % | -3.53 % |
| 30d % | 4.58 % |
| 60d % | 30.01 % |
| 1y % | 43.56 % |
| Market Cap | $2,025,665,373,404.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
Advertising transparency