$BTC begins a new week with bullish momentum ahead of the Federal Reserve’s upcoming policy meeting, which could significantly shift market sentiment. BTC/USD is trading tightly around the $107,000 mark, and traders are preparing for a volatile stretch buoyed by inflation fears, the Israel-Iran feud, and the Wednesday FOMC meeting.

Here are four developments the market is watching.

Federal Reserve decision’s market influence

All eyes are on the US Federal Reserve’s June 18 Federal Open Market Committee (FOMC) meeting, which could more than likely send crypto markets deeper into volatile territory. The Fed is expected to keep rates unchanged, continuing its pause on cuts throughout 2025. However, inflation pressures are complicating the central bank’s position.