Bitcoin fell below $64,000 after the US Federal Reserve decided to keep interest rates unchanged, accompanied by signals reflecting a more hawkish approach to monetary policy, prompting investors to reduce their exposure to high-risk assets.
Bitcoin had risen to a daily high of $66,315 on June 17, benefiting from easing geopolitical tensions in the Middle East and lower oil prices. However, the currency quickly lost momentum after the Federal Reserve's announcement, falling by about 4% to $63,683 before partially recovering and trading near $64,444.
The selling pressure came after the US Federal Reserve kept interest rates within the range of 3.50% to 3.75%, while its economic forecasts showed the likelihood of implementing fewer interest rate cuts in the coming period, with the possibility of tightening monetary policy if needed.
The remarks of Federal Reserve Chairman Kevin Warsh also sparked caution in the markets after he indicated a move towards reducing reliance on traditional forward guidance, increasing uncertainty about the course of US monetary policy.
Despite the support the markets received from the implementation of a temporary peace agreement between the United States and Iran, which included the reopening of the Strait of Hormuz and the resumption of Iranian oil exports, concerns related to interest rates overshadowed the positive impact of these developments, especially with oil prices falling to around $75 a barrel.
In the derivatives markets, the cryptocurrency sector saw the liquidation of trading positions exceeding $1.2 billion in value during the past 24 hours, the majority of which were buy positions, contributing to increased pressure on prices.
Investors are currently awaiting the expiration date of Bitcoin options contracts on June 26, with data indicating that there are open contracts with a nominal value of approximately $10.5 billion, which could raise the level of volatility and affect the direction of the market in the coming days.
