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Bitcoin Recovery Meets Fed Policy Resistance

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Bitcoin's recent rally toward $75,000 reflects renewed risk appetite, buoyed by easing Middle East tensions and record global equities. However, this upward momentum faces a significant macroeconomic headwind: Federal Reserve monetary policy. The bond market continues to signal expectations of sustained higher interest rates, creating a 'Fed ceiling' that limits potential gains.

Unlike previous cycles, Bitcoin lacks the tailwind of anticipated rate cuts or quantitative easing. This fundamental constraint suggests that while geopolitical relief provides short-term support, sustained bullish momentum requires either a dovish Fed pivot or stronger crypto-specific catalysts. The current environment favors range-bound trading rather than explosive growth.

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