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Bitcoin is experiencing a tough week. As of June 24, 2025, prices are hovering between $101,000 and $103,000, representing a drop of about 4.3% to 5.6%. The market is not plunging, but clearly cooling off.
Long-term Bitcoin supporters continue holding onto their investments and anticipate stronger price action eventually. Yet, in the immediate future, market activity is subdued. Analysts highlight increased selling pressure combined with technical indicators signaling short-term selling opportunities. This is not an ideal time for significant investments.
Here is our analysis of why Bitcoin price is down this week:
Bitcoin dropped below $99,000 on Sunday following news of Israeli and U.S. airstrikes on Iranian nuclear facilities. This event led to approximately $595 million worth of Bitcoin long positions being liquidated within hours. Bullish traders felt the impact sharply after benefiting from a year-long bullish trend. Generally, cryptocurrencies perform poorly during periods of geopolitical instability due to their perceived "risk-on" nature.
By Monday, Bitcoin’s price stabilized somewhat, recovering to just over $100,000. Breaking below the psychologically significant $100,000 mark shook investor confidence. Even though prices stabilized quickly, nerves remain frayed.
Investors turned to traditional safe-haven assets after the U.S. military action against Iran. This bolstered the dollar with the Dollar Index (DXY) surging to 98. For context, the DXY measures the dollar against major currencies such as the euro, yen, and pound. Historically, Bitcoin struggles when the dollar strengthens. Investors typically move away from riskier assets like cryptocurrencies under these conditions.
The Federal Reserve plans to maintain interest rates between 4.25% and 4.50% during its meeting, marking the fourth consecutive unchanged decision. The Fed remains cautious, assessing the ongoing effects of recent tariffs and regulatory decisions by the Trump administration.
Updated economic data will soon clarify the Fed’s next moves. Currently, headline inflation is at 2.4%, core inflation stands at 2.8%, and unemployment remains stable. Interest rates directly impact economic activity: lower rates encourage spending and investing, typically benefiting Bitcoin and other risk assets. Conversely, stable or rising rates put pressure on volatile markets.
Because the Fed shows no sign of lowering rates, investors have become cautious about Bitcoin. Without anticipated rate cuts, Bitcoin might face further downward pressure.
As June nears its end, Bitcoin’s short-term outlook appears uncertain. Bitcoin price will likely stay within a range between $97,000 and $112,000. Breaking above $112,000 could restore bullish momentum. However, falling below $100,000 might trigger further declines toward the $97,000 support level or lower.
Currently, the market sentiment is leaning bearish. Investors are hesitant, waiting to see whether future catalysts like Fed actions, geopolitical developments, or unexpected events shift the narrative significantly.
With deep roots in traditional finance and the digital asset industry, Acquire.Fi operates as a specialist M&A advisory firm. Coverage spans M&A, secondaries, OTC, and capital markets advisory across digital assets and frontier tech. Our team has decades of combined experience across every stage of the deal lifecycle.
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