Gate News bot reports that according to Cointelegraph, CryptoQuant writer Amr Taha believes that Bitcoin has historically benefited from periods of interest rate freezes by The Federal Reserve (FED), and a particularly bullish market environment may be coming in 2025.
At the Federal Open Market Committee meeting held on June 18, (FOMC), officials unanimously voted to maintain the interest rate at the current level, with the market not showing a shift until the third quarter.
“After the Federal Reserve decided to keep interest rates stable at its most recent policy meeting, the Bitcoin market sent a series of complex signals,” Taha summarized.
Taha pointed out that there is a difference between the price trend of BTC and the open interest (OI) of major CEX (the total number of long and short derivative contracts held by traders).
“As shown in the chart of the BTC price and open interest changes of the exchange, BTC has formed a continuous moving average low point just above $104,000. This level has consistently acted as a strong demand zone, absorbing selling pressure repeatedly. However, in contrast, the exchange’s open interest has created a series of lower lows, indicating that the entire derivatives market is gradually deleveraging.”
Despite the price repeatedly testing the support level, the decline in trading volume, along with the Federal Reserve’s easing policy, typically enhances the bullish expectations for Bitcoin.
The article summarizes: “The timing of this cleanup coincides with the Federal Reserve’s decision to pause interest rate hikes—this is a macroeconomic signal that typically boosts risk assets like Bitcoin. Historically, Bitcoin tends to show a bullish trend after price stabilization, especially when signs of liquidation exhaustion and a decrease in open contracts appear.”
Based on CoinGlass data, the possibility of a “short squeeze” is increasing, with sell-side liquidity accumulating around $106,000.
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