Bitcoin Holds $107K As Stagflation, Fed Rate Cuts Loom
From Cointelegraph
June 27, 2025 4:00 PM:
Bitcoin struggles to maintain above $107,000 as exchange inflows hit historic lows. Stagflation fears rise in the US, with growth slowing and Fed rate cuts possible to boost Bitcoin price. Onchain data hints at a fall breakout. Despite a rally, retail investor participation remains low, with economic uncertainty looming.
Fed officials slash US GDP forecast to 1.4% for 2025, with inflation at 3% and rising unemployment. Economic data shows slowing growth and stubborn inflation, signaling stagflation. Trade wars continue, with tariffs set to impact US and EU imports. The economy remains fragile, with personal consumption growth at its weakest.
Bitcoin market lacks broad conviction, with low exchange inflows and quiet retail participation. Recovery from recent slump driven by institutional investors. Onchain metrics show decline in retail activity, raising questions about sustainability of bull market. Institutional dominance may not be enough to sustain the rally.
Long-term holders quietly accumulating Bitcoin, hinting at potential upward reversal. Historical patterns suggest next leg could target $160,000 range. Seasonality data points to summer consolidation phase. Economic deterioration could lead to Fed rate cuts, coinciding with Bitcoin exit from seasonal slump and accumulation by long-term holders.
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