Bitcoin Price Slides to $107K Amid Fed Ambiguity and Macroeconomic Stress

In the wake of the latest U.S. Federal Open Market Committee (FOMC) minutes, Bitcoin has edged down 0.8% over the past 24 hours, momentarily dipping to $107,000. The minutes painted a cautious picture, underscoring:

• The growing danger of inflation accelerating,
• Deepening fears about unemployment trends,
• The Fed’s decision to stay on pause with rate cuts for now.

Markets pushed higher across the board—S&P 500 futures rose 1.4%, while oil prices added 1.6%. The boost may be tied to a federal judge’s move to halt presidential tariff measures. But a pending appeal leaves the outcome—and investor confidence—hanging in the balance.

As the crypto market corrected, trader anxiety crept in: 

• Fear & Greed Index slid to 65, signaling moderate greed,
• Bitcoin’s dominance share narrowed to 62.7%,
• Altseason Index stayed low at 26—it’s still Bitcoin’s time.

The sell-off was marked by a sharp rise in liquidations volume totaling $295 million, with long positions comprising over 62% of the losses. BTC traders were particularly exposed: $50 million in long liquidations vs. $10 million in shorts. ETH traders, on the other hand, saw heavier short-side damage—$55 million in short liquidations, compared to $41 million on longs.

Key Levels and Downside Risk

Bitcoin dipped below its ascending trendline but has since tested it from the reverse side. Price action remains around $108,000, which may signal resilience—yet the bulls need to push above $109,000 soon. Without a decisive breakout, the risk of a prolonged downturn remains elevated.

Trader UB has flagged $110,300 as a critical resistance point and highlighted $106,100 and $99,100 as support zones to monitor. The price’s behavior around these levels, he noted, will reveal much about the broader state of the market.

Macroeconomic Uncertainty Looms Over Market

Total net inflows into U.S. spot Bitcoin ETFs reached $432.7 million on May 28, 2025. The vast majority came from a single player—BlackRock’s IBIT, which alone added $481 million. IBIT continues to dominate the field, with daily trading volume hitting $2.71 billion, several times higher than competing funds.

Analysts from The Kobeissi Letter warn that current labor sentiment trends are flashing early signs of rising unemployment. If the situation deteriorates, the Federal Reserve may be compelled to cut rates to stimulate business spending—a view reinforced by the latest FOMC minutes.

The difference between the share of Americans saying that jobs are plentiful minus those saying they are hard to get fell to 13.2%, marking the 5th consecutive monthly decline. In previous economic cycles, this metric has been a leading indicator for unemployment.

But the path forward is fraught: lowering rates risks inflaming inflation, especially under renewed Trump-era tariff pressure, while sticking to high rates could throttle the economy and deepen job market fragility.