Trends in the crypto market before the Fed interest rate decision: Analysts are optimistic about Bitcoin breaking through $106,000

The Fed is about to announce the June interest rate decision, and the market is highly focused on officials' expectations for the number of rate cuts this year. Financial analysts point out that although two rate cuts within the year remain the mainstream expectation, some officials may prefer to cut rates only once, which would affect market sentiment. If the dot plot indicates only one rate cut, or if the Fed chairman expresses that there is no urgency to cut rates, the dollar may strengthen as a result. Currently, traders generally expect the Fed to cut rates for the first time in September.

At the same time, the situation in the Middle East remains tense, and global market concerns over oil supply are rising. The United States has increased its military presence in the Middle East, including aircraft carriers and destroyers. However, some analysts point out that the market's reaction to the geopolitical situation is relatively calm, possibly because investors have prepared for uncertainties and will not overprice the worst-case scenario.

In the crypto market, Bitcoin has experienced a pullback due to geopolitical risks, briefly dropping to around $103,000, and is currently quoted at $105,478. Analysts believe that although the current price range has not confirmed a bottom, it offers a good accumulation opportunity. If Bitcoin can break through $106,000, it may initiate a new wave of strong growth. Short-term support levels are near $103,000 and $100,000. Additionally, other analysts have pointed out two key resistance levels at $108,951 and $110,406; if Bitcoin can reclaim $109,000 with increased trading volume, a bullish outlook may be considered.

Regarding Ethereum, the current price is hovering around $2,548, having attempted multiple times to break through the $2,700 resistance recently without success. Analysts point out that although on-chain data shows long-term bullish signals, the short-term technical outlook remains complicated, and a breakthrough of $2,600 is needed to reignite upward momentum. Some believe that Ethereum will challenge $2,800, which could subsequently drive other cryptocurrencies up.

The three major U.S. stock indices closed lower, and crypto-related stocks performed weakly. The U.S. Senate passed the GENIUS stablecoin regulatory bill, establishing a federal regulatory framework for stablecoins, but the market's reaction was tepid, with related concept stocks and cryptocurrencies performing modestly, possibly having already priced in this news.

It is worth noting that multiple social media accounts related to cryptocurrencies have been unfrozen. At the same time, there are several projects on-chain that have seen rapid increases in value, some of which are tokens issued by well-known individuals that have significantly increased in market value in a short period, but their subsequent performance varies.

Overall, the crypto market is at a critical moment, and the Fed's decisions and geopolitical developments will be important factors influencing short-term trends. Investors should closely monitor the progress of these events and adjust their strategies in a timely manner based on market changes.