The price of Bitcoin has reached $107,050, gaining 1.5% overnight, demonstrating notable bullish strength with the ongoing Israel-Iran conflict heightening, alongside the upcoming Federal Reserve FOMC Meetings.

Tomorrow, the Fed is expected to announce its interest rate plan, and prediction platform Polymarket shows a 98% chance of no changes and a 2% possibility of a 25 bps cut.

“I think you need to put $BTC in context. We made a new ATH 3 weeks ago. We’re consolidating above former ATHs. We’ve corrected 5% from ATHs. Yes, the LTF is choppy and has news pressure. But don’t let the effects of zooming in distract from what this chart really looks like.”
— Cold Blooded Shiller @ColdBloodShill

Bitcoin Price Positioned for Growth Ahead of FOMC

With the Fed meeting approaching, Bitcoin sits just 4.2% from breaking new all-time highs, reached last month at $111,814. Despite external factors like the Israel-Iran conflict escalating, Bitcoin remains resilient. Earlier this month, BTC stabilized above key support after testing below $103,000.

Expectations are high that the Fed will either cut rates by 25 bps or maintain them, potentially propelling Bitcoin prices to new heights as both institutional and retail investors seek to invest.

Bitcoin Supply Dwindling on Exchanges

As Bitcoin’s price hovers close to its peak, available supply on exchanges is shrinking. Previous market responses to similar conditions have led to significant price increases.

Historically, a mass withdrawal of Bitcoin from exchanges before resulted in a surge in price from $16,600 to $31,000 by April 2023.

The prospect of institutions purchasing Bitcoin, coupled with predictions from notable figures like Binance’s CZ, who hints at prices exceeding $500,000, adds credibility to soaring expectations.

Institutional Buying Surge Amid Retail Investor Hesitation

“BLACKROCK HAS BOUGHT ETH FOR 9 DAYS IN A ROW”
— Arkham @arkham

Bitcoin’s technical performance is strong, underscoring positive fundamentals. Notable purchases by MetaPlanet have pushed its holdings to 10,000 BTC, overtaking Coinbase to rank 9th among the largest Bitcoin holders. Institutions like BlackRock keep accumulating ETH, intensifying their support in the face of market insecurities.

Predictions for this week imply a potential rate cut by the Fed or stabilizing conditions in the Middle East, which could escalate Bitcoin and Ethereum prices significantly.