Bitcoin Risks $60K Test As Hawkish Fed Erases Relief Rally

Bitcoin (BTC) fell toward $62,000 after a hawkish Federal Reserve signal pushed traders back into defensive positions.

Bitcoin Price

Bitcoin fell from a Jun. 17 high of $66,315 to an intraday low near $62,000 in early Jun. 18 trading, according to Bitcoin Magazine. The move broke support near $64,000 and left the market struggling to hold around $62,500.

The sell-off followed the Fed’s decision to keep its benchmark rate at 3.50% to 3.75%. Updated projections reduced expectations for rate cuts, while Chair Kevin Warsh left open the possibility of further tightening.

That message outweighed a separate geopolitical easing.

The United States and Iran implemented an interim agreement that reopened the Strait of Hormuz and allowed Iranian oil exports to resume.

Oil prices fell toward $75 per barrel, a development that would usually support risk assets. Bitcoin did not follow, showing that monetary policy is driving short-term sentiment.

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Bitcoin Support

Traders are now focused on the Jun. 26 Bitcoin options expiry, which carries about $10.5 billion in open interest, according to Bitcoin Magazine Pro data. Calls are clustered near $80,000, while put demand has grown near $60,000.

The current max pain level sits near $74,000, well above spot prices. That gap leaves many bullish positions under pressure and could increase hedging flows if price keeps weakening.

Technical signals also show fading momentum. Bitcoin remains below the 61.8% Fibonacci retracement near $65,000 and broader trend resistance near $68,400, while liquidity clusters sit around $65,000 to $67,000 above price and near $63,500 and $62,000 below it.

Institutional demand has softened as U.S.-listed spot Bitcoin ETFs recorded recent outflows. The Coinbase Premium Index also remains negative, pointing to weaker buying from U.S.-based participants.

Still, the decline is not one-sided. Wallets holding at least 1,000 BTC have reached their highest count since March, while exchange reserves have fallen, suggesting that long-term holders are still pulling coins away from trading venues.

Bitcoin is now trading inside a broad $60,000 to $70,000 range. A move back above $65,000 and then $67,000 could shift attention toward $70,000, while a break below $62,000 would put $60,000 and the June low back in focus.

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