Bitcoin (BTC) Price Hits 10-Day Peak on Fed Rate Decision

Bitcoin (BTC) surged by 4% on Wednesday, reaching a 10-day high of $85,900 as the U.S. Federal Reserve's decision to pause interest rate hikes aligned with investor expectations.

Bitcoin (BTC) price rose by 4% on Wednesday, hitting a 10-day high as the U.S. Federal Reserve’s decision to pause interest rate hikes went as expected by investors.

This bullish momentum follows three consecutive days of strong institutional inflows into Bitcoin ETFs, which saw a total of $512 million in inflows.

As BTC price faces critical resistance at $90,000, investors are watching closely to see whether institutional demand and macroeconomic conditions will trigger more gains in the coming trading sessions.

Bitcoin (BTC) ETFs saw a huge inflow of $512 million over 3 days ahead of the Fed rate decision.

According to SosoValue data, after a 3-week selling spree, Bitcoin ETFs have clocked positive inflows for the past three trading days.

On Tuesday alone, Bitcoin ETFs saw $209 million in inflows, marking some of the strongest demand periods in recent weeks. Overall, the funds have accumulated over $512 million in Bitcoin purchases since Friday.

The latest round of institutional buying activity comes as the U.S. Federal Reserve announced a pause in interest rate hikes, a decision that was largely anticipated by the market.

With such sustained inflows and no signs of slowing down yet, institutional investors appear to be swinging bullish on BTC’s short-term price prospects as markets priced in a 99% chance of a rate pause at the start of the week.

BTC short positions were closed in droves near $85K as liquidation heatmaps suggest lower support levels may be weaker.

Despite its recent gains, Bitcoin price is showing more upside potential. According to the latest derivatives data from Coinglass, over $290 million worth of BTC short positions were closed as the cryptocurrency approached the $85,000 level.

Short traders, who profit when prices decline, are making last-ditch efforts to defend their positions and avoid a wave of forced liquidations. However, they are facing increasing pressure as BTC continues to rise.

The heatmaps suggest that BTC short liquidations at the $85,000 level may have weakened lower support zones and lower resistance levels.

If Bitcoin sustains momentum and manages to break above $90,000, it could trigger a cascading effect, forcing more short sellers to cover their positions and further driving up the price.

A pause in rate hikes signals a more accommodative stance toward financial markets, which typically benefits risk assets such as cryptocurrencies.

Lower interest rates make traditional savings and fixed-income investments less attractive, prompting investors to seek higher returns in alternative assets like Bitcoin.

If institutional investors interpret the Fed’s stance as a green light for continued Bitcoin accumulation, ETF inflows could remain strong, further reinforcing the bullish outlook.

Bitcoin price is showing potential to continue its uptrend as ETF inflows are surging and macroeconomic conditions remain favorable.

However, to sustain its bullish momentum, BTC must overcome key resistance levels.

On the downside, strong support levels include: