Key Takeaways:
Bitcoin bounces toward $105,000 after U.S. President Trump says Iran reached out for dialogue.
Trump lashes out at Fed Chair Jerome Powell, calling him a “stupid person” amid growing pressure for rate cuts.
Traders prepare for volatility around the June 18 FOMC meeting, with BTC order books showing stacked liquidity at $103,000.
Bitcoin Price Stabilizes Near $105K Amid Geopolitical Easing and Fed Watch
Bitcoin (BTC) rebounded toward $105,000 on June 18 following comments from U.S. President Donald Trump that suggested Iran had reached out to the U.S. to open channels of communication. The remarks came as the crypto market remained on edge due to rising geopolitical tensions and a looming Federal Reserve interest rate decision.
BTC/USD had previously dipped as low as $103,857 on Bitstamp earlier in the session, but market sentiment improved after Trump’s statement. According to Cointelegraph Markets Pro and TradingView, Bitcoin briefly recovered to retest $105,000 during the Wall Street open.
Trump Comments Ease Market Tension, But Powell Criticism Escalates
Speaking to reporters on the White House lawn, President Trump confirmed that Iran had “reached out” in recent hours. “I said, ‘It’s very late,’” Trump remarked, suggesting that while the U.S. is open to dialogue, the ongoing Middle East conflict may still intensify.
Despite the brief relief rally, macroeconomic concerns lingered. Trump again criticized Federal Reserve Chair Jerome Powell, reiterating demands for interest rate cuts — demands the market currently sees as unlikely to be met during the June 18 FOMC meeting.
“$88 billion came in from tariffs; no inflation. I know what I’m doing,” Trump added.
Fed Expected to Hold Rates, but Hawkish Outlook Could Pressure BTC
The Federal Reserve is expected to keep interest rates steady, but market watchers are closely eyeing the tone of Fed Chair Jerome Powell’s comments and the dot plot — a chart of policymakers’ rate expectations.
Crypto trading firm QCP Capital warned that geopolitical instability — including fresh U.S. tariffs and Middle East escalation — has introduced new inflation risks. “This is no ordinary inflation fight,” QCP wrote in its latest market bulletin.
“If the Fed reduces its forecast for 2025 rate cuts, it would likely pressure risk assets, including Bitcoin,” the firm added, noting that fewer projected cuts would tighten liquidity expectations.
Bitcoin Order Books Show Heavy Bid Stacking Below Price
Crypto traders are watching closely for signs of a short squeeze or a volatility spike triggered by the Fed’s decision. According to trader Skew, the market is currently skewed toward defensive positioning, with heavy bid support seen near current prices.
“Orderbooks are skewed toward bid depth — more bids closest to price vs asks,” Skew noted in a post on X. “Perp positioning is pretty short with all the stacked defensive positioning here.”
Data from CoinGlass confirms that the area around $103,000 is a major liquidity zone and could act as a short-term price magnet if the market attempts a liquidity grab.
Fellow trader TheKingfisher suggested that the setup for a short liquidation event is forming. “A squeeze is loading,” he wrote, citing stacked sell-side orders between spot price and the $112,000 all-time high.
BTC Faces Key Macro Test as Traders Brace for FOMC Volatility
Bitcoin remains highly sensitive to geopolitical developments and monetary policy signals. With the Federal Reserve expected to maintain rates and issue revised projections for the rest of 2025, the crypto market is preparing for potential volatility.
If the Fed leans hawkish, liquidity conditions may tighten, weighing on Bitcoin. But if Powell signals flexibility and fewer inflation risks, traders say BTC could quickly reclaim higher levels and resume its upward trajectory.
For now, the $103,000–$105,000 range remains pivotal as markets digest the latest headlines and await clarity from the Fed, according to Cointelegraph.
