Escalating Tensions in the Middle East: Bitcoin Retreats to 104K as Market Awaits Federal Reserve’s Interest Rate Decision
Due to increasing concerns over the escalation of tensions in the Middle East potentially leading to more direct U.S. involvement, oil prices have risen, and U.S. stocks have declined. All cryptocurrencies have also dropped, with Bitcoin retreating to 104K and ETH reported at $2,512 before the deadline. The market will closely monitor today’s Federal Reserve interest rate decision and ### Powell’s post-meeting press conference.
Middle East tensions escalate, Trump demands Iran’s “unconditional surrender”
According to Bloomberg, citing informed sources, U.S. President Trump met with his national security team to discuss the escalating conflict in the Middle East, raising speculation about the U.S. potentially joining Israel in attacking Iran.
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Trump issued a statement demanding Iran’s “unconditional surrender” and warned of a possible attack on Iranian leader Ayatollah Ali Khamenei, claiming that the U.S. knows exactly where the Supreme Leader is hiding.
“He is easily targeted, but he is safe there—we will not kill him! At least not for now!”
Retail sales decline for two consecutive months, market focuses on Federal Reserve interest rate decision
The U.S. reported May retail sales at -0.9%, marking a second consecutive month of decline, indicating that concerns over tariffs and financial conditions have led consumers to pull back after the spending surge at the beginning of the year. Industrial production has also declined, and builder confidence has fallen to its lowest level since December 2022.
As Federal Reserve officials convene for a two-day meeting in Washington, traders expect the Fed to maintain interest rates in June and July but may signal its intentions through revised economic and interest rate forecasts on Wednesday. The Federal Reserve will issue a statement at 2:00 AM Taiwan time on June 19, followed by ### Powell’s press conference at 2:30 AM.
(Countdown to Fed decision! Market bets Powell will hold steady)
Bitcoin falls to 104K, over $400 million liquidated across the network
Bitcoin has dropped from 108K the day before, reaching a low of $103,371, and recovering to 104K before the deadline. Ethereum also fell to a price of $2,453 but was reported at $2,512 before the deadline.
According to data from Coinglass, $418 million in cryptocurrency positions were liquidated within 24 hours, with ETH accounting for $120 million, followed by BTC at $100 million. The Fear and Greed Index has also reached a neutral level of 53, indicating some disinterest in the recent range-bound movement of the market.
Risk Warning
Investing in cryptocurrencies carries a high level of risk, and prices can be extremely volatile, potentially leading to a total loss of principal. Please assess risks carefully.
