Fed Signals Hamper Bitcoin Recovery
Bitcoin remained under pressure during the European session on Thursday (June 17th), as the crypto market continued its correction after the Federal Reserve maintained interest rates but signaled a more hawkish stance. BTC was seen around $64,232, with a daily range of $63,666 to $66,316.
The main pressure came from expectations of a renewed US interest rate hike. The Fed has held rates, but a growing number of policymakers see the possibility of a rate hike this year due to persistently high inflation. New Fed Chairman Kevin Warsh also signaled a change in the central bank's communication methods, adding uncertainty to risk assets.
For Bitcoin, the high interest rate environment presents a headwind as investors tend to be more selective about speculative assets. When yields and the US dollar remain strong, the appeal of crypto may diminish as the market prefers assets with clearer returns and more manageable risks.
The interim US-Iran peace deal, which includes the reopening of key shipping lanes in the Middle East, has not been enough to boost crypto sentiment. Risk-on flows are predominantly directed toward technology, AI, and semiconductor stocks, which are considered to have stronger fundamentals, while crypto is still burdened by uncertain institutional flows.
Pressure is also evident in major altcoins. Ethereum is hovering around $1,745.36, XRP at $1.18, and Solana at $71.90, all remaining under daily pressure. This movement indicates that the weakness is not limited to Bitcoin but is also spreading to the broader crypto market.
The market's next focus will be on the direction of Treasury yields, the US dollar, spot crypto ETF fund flows, and further developments in the US-Iran deal. As long as the Fed maintains a hawkish tone and global liquidity remains tight, Bitcoin will likely struggle to build a strong recovery, even if geopolitical sentiment begins to improve. (arl)
Source: Newsmaker.id
