What’s Driving Bitcoin’s Price Ahead of This Week’s FOMC Meeting?

Jakarta, Pintu News – As reported by Coingape (16/6), the price of Bitcoin (BTC) showed resilience by staying above $106,000, despite geopolitical escalation in the Iran-Israel conflict, while oil prices tend to continue to rise.

All eyes are now on this week’s crucial FOMC meeting and the Fed’s decision on the rate cut. On the other hand, gold prices set a new record high, reaching $3,433 per ounce on June 16, 2025.

Bitcoin Price and Risk-On Assets in the Spotlight Ahead of FOMC Meeting

After the crypto market volatility and massive liquidation last week, Bitcoin and altcoin prices managed to form a solid base over the weekend, amid the escalating conflict between Iran and Israel.

Read also: Is Bitcoin About to Crash? Legendary Trader Peter Brandt Sounds the Alarm!

Meanwhile, WTI crude oil prices have risen 5% in the US futures market, with some market analysts expecting the price to break $100 per barrel by the end of the year. In the past 10 days, Brent oil prices jumped from $66 to $74 due to the Middle East approaching a war situation.

Given that Iran controls about 3.5% of global oil supply, JPMorgan analysts predict oil prices could rise to more than $130 per barrel.

The surge is expected to push US Consumer Price Index (CPI) inflation close to 5%, double the current rate. This is likely to delay a planned interest rate cut by the US Federal Reserve, according to The Kobeissi Letter.

Analysts also highlighted the worst-case potential, which is the closure of the Strait of Hormuz. If this happens, it could significantly disrupt global oil supplies and increase instability in the world economy, while putting pressure on risk-on assets.

As of June 16, 2025, Bitcoin’s price had risen 1.16% to $106,688, with a 14% jump in daily trading volume that now stands at over $40.5 billion.

Renowned analyst Rekt Capital explained that BTC is still holding above the upper limit of the accumulation zone at $104,400. A weekly close above this level signals a bullish market sentiment.

Attention on BoJ and FOMC Meeting

With the Japanese bond market in a slump, attention is now on the Bank of Japan (BoJ) policy meeting that will take place this week.

Read also: 3 Crypto Made in USA to Watch in the Third Week of June!

Amid uncertainty regarding Trump’s tariff policies, the BoJ is likely to delay a rate hike until the first quarter of next year, according to a recent report from Reuters.

The Bank of Japan (BoJ) continues to push for tighter monetary policy, while the US Federal Reserve Chairman, Jerome Powell, also refused to announce an interest rate cut anytime soon. The Federal Reserve has maintained high interest rates throughout this year to combat inflation.

In addition, Powell is reluctant to cut interest rates because he is concerned that the tariffs imposed by President Donald Trump could push up the price of goods for consumers.

However, about 40% of traders still factor in two Fed rate cuts until the end of 2025.

That’s the latest information about crypto. Follow us on Google News to stay up-to-date on the world of crypto and blockchain technology.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Coingape. How Will Bitcoin Price Perform As Oil Jumps 5% Ahead of FOMC Meet This Week. Accessed on June 17, 2025