Bitcoin's price action is expected to benefit from the Federal Reserve's recent decision to pause interest rate hikes, according to analysis from CryptoQuant. The report highlights historical trends showing that Bitcoin has typically thrived in environments with stable interest rates. Following the Fed's decision on June 18, 2025, the Bitcoin market is displaying positive signals, particularly on Binance. Notably, while Bitcoin's price has formed consistent support near $104,000, open interest on Binance has seen decreasing trends, suggesting a potential short squeeze is developing as liquidity stacks around the $106,000 mark. Analysts indicate that this low open interest may create upward momentum for Bitcoin, especially given the favorable macroeconomic backdrop. Additionally, a rise in liquidation risk could trigger a surge in Bitcoin prices, as shorts begin to cover. Overall, with prevailing bullish indicators and support zones, traders are keenly observing Bitcoin's trajectory toward the potential $106,000 target.

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