Bitcoin Price Today: Fluctuating Around $107,000 Amid Fed Caution, Upcoming Inflation Data
Bitcoin hovered near $107,000 on Friday, as the cryptocurrency market took a breather as investors remained cautious ahead of uncertainty surrounding the Federal Reserve’s interest rate policy and upcoming key PCE inflation data.
The world’s largest cryptocurrency has gained more than 5% this week, buoyed by improved risk sentiment after the US-brokered ceasefire between Israel and Iran continued to hold. Reports of strong institutional and corporate buying also helped boost Bitcoin’s price.
However, the rally is facing renewed concerns over the Fed’s rate-cutting path.
Bitcoin corrects slightly in technical resistance zone
As of 09:09 ET (13:09 GMT), Bitcoin fell 0.1% to $106,770. Despite a significant recovery from the lows earlier this month, BTC has yet to break out of the narrow trading range of $103,000-$105,000 that has lasted throughout June.
Experts say caution ahead of the PCE price index data, the Fed's preferred inflation gauge, is causing speculative capital to temporarily withdraw from risky assets like cryptocurrencies.
Trump pressures Fed, PCE could shake markets
President Donald Trump has recently stepped up his criticism of Fed Chairman Jerome Powell, calling for an immediate interest rate cut. There are even reports that Trump could replace Powell if he is re-elected, adding to the uncertainty in the US financial market.
Against that backdrop, PCE data due later Friday is expected to show inflationary pressures remain elevated, which could force the Fed to keep rates higher for longer.
Cryptocurrencies typically benefit from low interest rates, so any indication that a cut is on the horizon could put selling pressure on the market.
Ark Invest Cuts Coinbase and Block Holdings
Meanwhile, Cathie Wood's prominent investment fund Ark Invest sold about $12.5 million worth of Coinbase (COIN) shares and $12.3 million worth of Block shares, according to Thursday's trading disclosure. The moves come as Coinbase shares hit an all-time high, up more than 51% year-to-date, while Block shares are down nearly 24%.
Altcoin Prices Diverge, Bullish Expectations Remain
In the altcoin market, volatility remains in a narrow range. However, long-term expectations continue to be bolstered by growing institutional acceptance. Japan’s Metaplanet has recently ramped up its Bitcoin purchases, while US mortgage giants Fannie Mae (FNMA) and Freddie Mac (FMCC) are considering accepting cryptocurrencies as collateral – a major step forward for the adoption of crypto in traditional finance.
Notable movers:
Ethereum (ETH): down 0.4% to $2,432.20 but still up 6.7% for the week.
XRP: down 3.4% to $2.08 but up 3% YTD.
Solana (SOL) & Cardano (ADA): down around 1%.
Dogecoin (DOGE): down slightly 0.4%.
Trump Coin ($TRUMP): up another 1%.
Summary
While Bitcoin and digital assets started the week on a positive note thanks to the ceasefire and positive institutional signals, uncertainty from the Fed and inflationary pressures remain major hurdles to a strong rally. Investors will be closely watching the PCE data and any comments from the Fed to determine the next direction of the crypto market.