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On Friday, June 20, 2025, Bitcoin hovered around $104,500, showing resilience despite growing caution in financial markets. Investors are closely watching signals from the Federal Reserve, which indicated a continued hawkish stance on interest rates to combat persistent inflation.
This level marks a slight retreat from the recent local high of $110,200 set earlier in the week. Market watchers attribute the price stabilization to a balancing act between institutional demand and macroeconomic uncertainty.
Fed’s Hawkish Policy and Crypto Market Reaction
The Federal Reserve’s latest comments suggest another rate hike could be on the table in July. This signal has historically created downward pressure on risk assets, including cryptocurrencies. However, Bitcoin’s strong performance indicates a maturing market less reactive to Fed tightening compared to previous years.
According to Bloomberg, Fed Chair Jerome Powell emphasized that inflation remains “stubbornly above target,” necessitating a prolonged high-rate environment. While this would typically trigger a selloff, the current trend in Bitcoin shows a flight to digital scarcity amid fiat volatility.
Institutional Demand and Market Confidence
Major firms like BlackRock, Fidelity, and JPMorgan continue to accumulate Bitcoin through ETFs and custodial holdings. The total institutional holdings now represent over $87 billion in BTC, according to Ark Invest data. This growing confidence helps anchor Bitcoin’s price in a tighter trading range.
Glassnode analytics show that long-term holders have increased their positions, reducing BTC available on exchanges to multi-year lows—another sign of supply-side constraint and strong investor conviction.
Outlook Going into Q3 2025
While a hawkish Fed may challenge further upside in the short term, many analysts remain bullish for Q3. Key upcoming factors include:
- US Q2 GDP results (July)
- July FOMC rate decision
- Ongoing ETF inflows
- Geopolitical risks (Middle East, Taiwan)
Also read: Top Crypto-Friendly Banks for Freelancers in 2025
Given these dynamics, Bitcoin’s consolidation near $104K could serve as a foundation for a renewed bull run later this summer—should macro and regulatory conditions remain relatively stable.
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