Bitcoin Drops Below $104,000 Amid Fed’s Rate Hold

Bitcoin price fell below $104,000 on June 19, 2025, following the Federal Reserve’s decision to hold interest rates at 4.25%–4.5%, impacting market sentiment significantly.

Federal Reserve’s cautious approach to tariffs and monetary policy affects cryptocurrency markets deeply, driving Bitcoin’s price below crucial support levels, triggering technical sell-offs and reflecting macroeconomic concerns.

The Federal Reserve, led by Chair Jerome Powell, maintained the benchmark interest rate between 4.25% and 4.5% as of June 19, impacting the cryptocurrency sector. Powell highlighted the need to “learn more about tariffs,” employing a data-driven stance. Bitcoin’s fall to approximately $103,910 on exchanges like Binance followed this decision. Historical analysis indicates that such economic caution often heightens bearish pressure on risk assets like cryptocurrencies.

The immediate fallout affects not just Bitcoin but correlated cryptocurrencies, including Ethereum, as investors reassess their portfolios. The denser liquidity pocket between $102,000 and $104,000 becomes a focal point, while market analysts warn of potential volatility if $98,000 is breached. This scenario seems to echo past occurrences where interest rate news fueled similar sell-offs.

Institutional entities appear to weigh macro risks by shifting away from volatile assets; however, there is no large-scale liquidation reported. On-chain data suggests that major price points maintain market stability despite the prevailing bearish sentiment fueled by macroeconomic caution.

“As long as Bitcoin stays above the STH Realized Price, we can still consider the market to be bullish. The scenario would only change if BTC loses the $98K level aggressively, which could trigger a deeper drop,” says On-Chain Analyst (Alphractal).

Market dynamics are reminiscent of prior instances where monetary policy changes led to significant crypto market fluctuations. The current threshold levels are being watched closely, with experts noting the critical importance of support resilience. Historical data reveals technical patterns, including Bollinger Bands indicating potential future volatility.