While the Federal Reserve is anticipated to maintain its benchmark rate this Wednesday, futures are now suggesting one or two cuts in 2025, a decrease from the three or four predicted at the year’s beginning. Traders continue to be cautious of inflation driven by tariffs, which could prolong tight policies.

Lead research analyst at BRN, Valentin Fournier, indicated that the volatility resulting from unchanged funding rates and the Israel-Iran conflict could further pull down Bitcoin prices. He also noted that these uncertainties have slowed down recent crypto ETF inflows.

“The short-term momentum has turned negative due to a mix of hawkish rate outlook, decelerating ETF inflows, and escalating geopolitical risk,” Fournier conveyed to The Block. “The market will keenly observe the Fed’s stance on future rate cuts, which could either exacerbate the current dip or provide support.”

Bitcoin’s price fell below $103,000 following Israel’s airstrike on Iran and was trading around $105,000 on Wednesday. However, Matt Mena, a crypto research strategist at 21Shares, holds a bullish outlook if the Fed announces its first cut in September.

Mena suggests that capital rotation from traditional money markets could significantly benefit crypto ETFs if rate cuts happen in Q3. “With the S&P 500 less than 5% from its record high and money market fund assets at a record $7.5 trillion, this capital is likely to shift into risk assets like crypto when rates start to fall,” he stated.

For the time being, analysts concur that the market remains at the mercy of Fed’s language and Middle East news, keeping prices within a range until clearer signals appear. Meanwhile, BTC options open interest remains near record highs, potentially indicating investor confidence.

Disclaimer: The Block is an independent news source providing crypto industry research, news, and data. Foresight Ventures, a major investor of The Block since November 2023, also invests in other crypto companies. Crypto exchange Bitget is an anchor LP for Foresight Ventures. However, The Block continues to operate independently to provide timely, impactful, and unbiased information about the crypto industry.

The post Crypto Market Faces Pressures from Federal Reserve and Middle East Tensions: A H2 Rebound Insight appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

Although Bitcoin attempted to regain the $110,000 mark earlier this week, it slipped below the 21-day moving average. Despite this, it remains above the 50-day moving average support level. The convergence of these moving averages, along with a distinct trendline resistance, has pushed Bitcoin into a descending triangle pattern with a tightening price structure.

A cryptographer on platform X notes that Bitcoin is forming a descending triangle pattern on its daily candlestick chart. As per technical analysis principles, this setup often indicates bearish trends. The associated chart image depicts repeated rejections from a downward trendline that commenced when Bitcoin hit a new peak of $111,814 on May 22. The base of the triangle, however, has remained constant with a support zone around $102,000.

The 21-day moving average (21MA), illustrated in blue, is applying downward pressure, acting as resistance, while the 50-day moving average (50MA), shown in green, is providing temporary support. As the price action continuously narrows within this triangle, the market is set for a decisive move. The direction of this breakout will likely determine the next significant trend.

The ongoing Israel-Iran conflict could be the catalyst that pushes Bitcoin out of its current range. Notably, the crypto market experienced a surge of liquidations following the news of an Israeli airstrike on Iran. Bitcoin’s behavior during such geopolitical instability can be unpredictable. It could either serve as a safe haven or be liquidated for liquidity. If market fear continues to rise, Bitcoin might break below the $102,000 support, thereby confirming the bearish implications of the descending triangle. However, if the market sees a return of bullish momentum, a break above the descending trendline could disprove the bearish pattern, paving the way for a retest of the $110,800 all-time high. Currently, Bitcoin is trading at $104,990.

The post Bitcoin’s Market Position Amid Israel-Iran Conflict: Analyzing the Descending Triangle Pattern appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.