US-Iran Peace Fades, Crypto Slumps Again
Bitcoin weakened again in European trading on Tuesday (June 23rd), continuing its correction after a brief recovery over the weekend failed to sustain. The world's largest cryptocurrency traded around US$62,000, after previously holding near the US$64,000 area. This weakness indicates that buying interest in the crypto market remains fragile, especially as investors reassess the risk of high interest rates in the United States.
The main pressure comes from changing expectations regarding Federal Reserve policy. Following last week's Fed meeting, the market began to predict that the US central bank would still leave the door open for an interest rate hike this year. This situation has negatively impacted crypto assets because Bitcoin and other digital assets do not provide a yield. When interest rates and bond yields rise, investors tend to prefer interest-bearing assets over speculative assets like crypto.
In addition to interest rate factors, outflows from spot Bitcoin ETFs also continue to weigh on the market. Institutional investors appear to have not fully returned to crypto assets following the selling pressure of recent weeks. Although the outflow rate has slowed compared to before, this condition still indicates that confidence in crypto products has not fully recovered. Weak retail demand in the United States is also evident in the Coinbase Premium Index, which remains under pressure.
Optimism regarding the United States-Iran peace talks is also starting to fade. Previously, market sentiment had improved after both sides reportedly made progress in negotiations. However, investors are still awaiting further discussions to confirm whether a peace agreement can truly be reached. As long as geopolitical uncertainty remains high, market participants tend to be more cautious about risky assets, including crypto.
Pressure has also spread to altcoins. Ethereum also weakened and hovered around US$1,600, while XRP, Solana, Cardano, BNB, Dogecoin, and politically themed tokens like TRUMP are also under pressure. The market is now awaiting several important US economic data, particularly the PMI and PCE inflation data. If the PCE shows inflation is still high, expectations for a Fed interest rate hike could intensify, potentially putting further pressure on Bitcoin. However, if inflation data eases, Bitcoin could attempt a rebound back to the US$63,500–US$64,500 area. (arl)
Source: Newsmaker.id
