Bitcoin and other digital assets are experiencing increased pressure amid the anticipated meeting of the US Federal Reserve regarding interest rates and the escalation of conflict in the Middle East. Analysts warn of a potential continuation of negative dynamics in the cryptocurrency market.
This is reported by Business • Media
Factors Pressuring the Cryptocurrency Market
Valentin Fournier, a leading analyst at BRN, believes that the Federal Reserve’s decision to maintain the current interest rate, along with tensions between Israel and Iran, could lead to further declines in Bitcoin’s value. According to the expert, uncertainty in financial and geopolitical markets has intensified capital outflows from cryptocurrency ETFs, adding pressure to the primary digital asset.
“The market will closely monitor the ‘language of the Fed’ regarding future rate cuts, which could determine whether the current downturn deepens or finds support. Given this uncertain backdrop and positioning slightly below previous highs, we are lowering risks. The path ahead is likely to be volatile, and any deterioration in the geopolitical landscape could provoke sharper downward movements,” stated Fournier.
The situation in the Middle East sharply escalated on the night of June 13, 2025, when Israel struck at the leadership of Iran’s armed forces. This immediately caused a significant drop in Bitcoin’s price.
Market Expectations and Future Prospects
The previous Federal Reserve meeting on interest rates took place on May 7, 2025, and concluded with no changes to the key rate. Considering the acceleration of inflation in May, most market participants predict that the regulator will not change the rate going forward. According to CME Group data, the probability of this scenario stands at 99.9%. The next Federal Reserve meeting is scheduled for June 18, 2025.
Matt Mena, an analyst at 21Shares, believes that in the third quarter of this year, capital could return to the cryptocurrency market if the Federal Reserve does decide to lower rates, even if this does not happen in June. Along with high activity from venture investors and a favorable macroeconomic situation, this could create conditions for the growth of Bitcoin and other risk assets in the coming months.