Bitcoin price: FOMC will trigger a strong bullish rally as Israel enters the war

The price of Bitcoin is currently trading at 107,088 USD, up 1.9% in the last 24 hours. In the context of escalating tensions between Israel and Iran, and with the upcoming FOMC meeting of the Federal Reserve of America (Fed) tomorrow, the crypto market is experiencing significant volatility.

Tomorrow, the Federal Open Market Committee (FOMC) will announce its interest rate decision, and based on the Polymarket prediction platform, the market believes that the likelihood of the Fed holding interest rates steady at the current level is very high, reaching up to 98%. Some predictions suggest that the Fed may cut interest rates by 25 basis points, bringing the rate down to around 2%.

Bitcoin makes a price increase mark amid global instability

Despite the tense factors from international events, especially the conflict between Iran and Israel, Bitcoin continues to show stability and strong growth. This is particularly impressive when looking at the price volatility history in the previous months. In May, Bitcoin reached a record high of 111,814 USD, and is currently only 4.2% away from this level, a clear sign that the value of Bitcoin is on track to establish new highs.

"I think you need to view BTC in a broader context.

We just set a new ATH level only 3 weeks ago.

Currently, we are accumulating at the previous ATH levels.

There was only a slight adjustment of 5% from that peak.

Although the short time frame (LTF) is volatile and affected by news factors.

However, don't let a narrow perspective cause you to lose sight of the overall picture that this chart is drawing.

While global events can cause significant fluctuations in the currency market in general, Bitcoin seems to be less affected. In fact, if these stressful events had occurred just a few months ago, the likelihood of Bitcoin dropping below the 100,000 USD level would have been very high. However, this time, the price of Bitcoin has remained stable above the important support level of 103,000 USD, and has even rebounded strongly from this price level, reaching back above 105,000 USD.

Considering the long-term time frames (HTF), the Bitcoin price chart shows strong and steady growth. Although in the short-term time frames (LTF), the market may still experience fluctuations, overall, Bitcoin remains a distinctly appreciating asset, especially when it holds firmly above the strategic support level of 103,800 USD. Current technical analyses indicate the potential for Bitcoin to continue surpassing higher milestones, especially if the Fed decides to cut interest rates or maintain the current interest rates.

Bitcoin supply decreasing: A sign of price increase

An important factor supporting the price increase of Bitcoin in the upcoming period is the shortage of supply on exchanges. The last time we witnessed a similar situation was at the end of 2022 and the beginning of 2023, when the transfers of Bitcoin out of exchanges caused the price to surge from 16,600 USD to nearly double, reaching 31,000 USD in April 2023.

The shortage of Bitcoin on exchanges is seen as a sign of a supply shock that could trigger a strong price increase in this bullish market cycle. Additionally, optimistic forecasts from prominent individuals such as Changpeng Zhao (CZ), the founder of Binance, also suggest that the price of Bitcoin could surpass the 500,000 USD mark during this bullish cycle, further increasing expectations for a bright future for Bitcoin.

Source: CryptoQuant## Organizations are buying Bitcoin strongly

It is particularly noteworthy that large organizations continue to increase their holdings of Bitcoin, despite concerns from retail investors. MetaPlanet, a Japanese company, recently announced the purchase of an additional 1,112 BTC, bringing the total number of Bitcoin held by the company to 10,000 BTC, ranking among the top 10 organizations with the largest Bitcoin holdings on Coinbase.

In addition, large financial institutions like BlackRock are also accumulating Ethereum, which shows a strong belief in the future of digital assets. These organizations are clearly not concerned about the instability factors in the world, and they continue to buy in with a long-term strategy, while retail investors are worried and hesitant to enter the market.

With the above factors, it is very likely that Bitcoin will continue to grow strongly in the near future. If the Fed meeting ends with a decision to hold interest rates steady or reduce by 25 basis points, combined with easing tensions in the Middle East, the flow of money into risky assets like Bitcoin will be even stronger. Bitcoin may soon set a new high, paving the way for a sustainable bull cycle in the coming months.

Investors and market analysts are all expecting that Bitcoin will reach higher price levels, with some believing that the price could surpass the 200,000 USD mark in this cycle. Although volatility and risk still remain, Bitcoin is currently showing unprecedented strength and attraction from large institutions. These fundamental and technical factors increase the likelihood that Bitcoin will achieve unprecedented highs in the near future.

Lilly