Bitcoin and the broader cryptocurrency market are currently experiencing low volatility, despite expectations of a major price shift following the U.S. Federal Reserve’s decision to hold interest rates steady. Bitcoin remains near $105,000, down 2.3% over the past week.
Analyst Daan Crypto notes that Bitcoin’s price has been trading within a narrow range between roughly $100,000 and $110,600 over recent weeks. Key levels to watch are $103,000 and $109,000. A breakout or breakdown from this range could bring renewed volatility and push the price toward those levels.
“BTC is hovering around $105K, the middle of the monthly range and monthly open. The price compression suggests traders are anticipating a significant move. Statistics favor a breakout or breakdown this week or month,” Daan Crypto said.
Meanwhile, trading firm QCP Capital warns that summer months typically bring reduced activity, which may suppress volatility further. BTC’s implied volatility is below 40%, reflecting this subdued environment. Coupled with the Fed’s hawkish stance, the market may see restrained price movement in the near term.
“The Fed remains cautious amid elevated inflation and tariff risks. Although some expect economic data softening to ease policy, current indicators suggest otherwise,” QCP Capital said.
Traders are advised to monitor key price levels closely and prepare for potential volatility shifts as seasonal trends and macroeconomic factors play out.