Bitcoin price surged by 4% on Wednesday, hitting a 10-day peak . This rally follows three consecutive days of substantial Bitcoin ETF inflows, totaling $512 million. As BTC flirts with the critical $90,000 resistance level, investors are closely watching the impact of the Federal Reserve’s policy decision on global markets.

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.

This bullish momentum follows three consecutive days of strong institutional inflows into Bitcoin ETFs, totalling $512 million. With BTC price facing critical resistance at $90,000, market participants are watching closely to see whether institutional demand and macroeconomic conditions will trigger more gains in the coming trading sessions.

ETF Inflows Surged $512M ahead of Fed Rate Decision 

Since their introduction, Bitcoin ETFs have become a key gauge of institutional sentiment in the cryptocurrency market. After 3-week selling spree, Bitcoin ETFs have recored positive inflows over the past three trading days, according to SosoValue data

On Tuesday alone, Bitcoin ETFs saw $209 million in inflows, marking one of the strongest demand periods in weeks. The funds have accumulated over $512 million in Bitcoin purchases, underscoring strong demand from corporate and institutional investors.

Historically, such sustained inflows have often preceded significant price breakouts, suggesting that institutional investors swung bullish BTC’s short-term price prospects as markets priced in a 99% chance of a rate pause at the start of the week.

BTC Faces Key Resistance at $90,000 Amid Short Squeeze Pressure

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 near 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, liquidation heatmaps suggest that BTC short liquidations at the $85,000 level may have weaken ed neighboring resistance zones. If Bitcoin sustains momentum and breaks above $90,000, it could trigger a cascading effect, forcing more short sellers to cover their positions and further driving up the price.

US Fed Rate Pause Boosts Risk Asset Appetite

The Federal Reserve’s decision to maintain interest rates at current levels has provided additional support for Bitcoin’s rally. 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 Outlook: Path to $90K and Beyond?

With ETF inflows surging and macroeconomic conditions remaining favorable, Bitcoin price forecast signals appears well-positioned for a continued uptrend. However, to sustain its bullish momentum, BTC must overcome key resistance levels:

• $90,000 – A major psychological level that could trigger a new wave of buying or profit-taking.
• $92,500 – The next upside target if BTC breaks through $90K.

On the downside, strong support levels include:

• $85,000 – A key level where short liquidations have already been triggered.
• $82,500 – A potential retest zone if BTC faces rejection at $90,000.

The ongoing BTC price surge is fuelled by strong institutional demand and a favorable macroeconomic backdrop. With $512 million in ETF inflows and short sellers under pressure, BTC’s path to $90,000 looks increasingly viable. However, breaking through this critical resistance will be key in determining whether Bitcoin can extend its rally toward new all-time highs.

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ibrahim

Crypto analyst covering derivatives markets, macro trends, technical analysis, and DeFi. His works feature in-depth market insights, price forecasts, and institutional-grade research on digital assets.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.