Bitcoin hovered near $64,000 on Thursday, with a hawkish Federal Reserve outlook and broader risk-off sentiment limiting its recovery momentum. The cryptocurrency was trading near the $63,993 mark, reflecting pressure on risk assets from the Fed’s “higher-for-longer” projection for interest rates. This stalled an attempted recovery from early June lows, as liquidations, outflows from exchange-traded funds (ETFs), and weak institutional participation weighed on prices.
The global crypto market capitalization decreased by 2.24% to $2.2 trillion, according to CoinMarketCap. Bitcoin and Ethereum experienced declines of 2.44% and 3.16% respectively over the past 24 hours. Major altcoins such as BNB, XRP, Solana, Hyperliquid, Dogecoin, and Cardano corrected up to 3.87%, though Tron saw a 0.64% increase.
Market sentiment has also been affected by concerns surrounding potential Bitcoin sales from Strategy, according to Akshat Siddhant, Lead Quant Analyst at Mudrex. While long-term holders continue to accumulate, immediate price action is influenced by the liquidation of leveraged long positions. These positions were caught offside by recent Federal Reserve policy adjustments.
Investors are now monitoring the $61,000-$63,500 range, which serves as a key support zone. Maintaining this level is crucial to prevent a deeper decline toward $55,000. Resistance for Bitcoin remains near $67,500, which presents a hurdle for any sustained upward movement in the near term.
Vikram Subburaj, CEO at Giottus, noted that Bitcoin was trading near $64,600 on June 18. Market volatility persisted as investors reacted to ETF outflows and evolving expectations regarding US monetary policy. A broader risk-off sentiment also contributed to a decline in investor confidence.
Despite recent fluctuations, Bitcoin has recovered from its recent lows and is holding above key support levels. However, institutional participation in the market remains subdued. This indicates that the market is still seeking stronger signs of sustained demand to drive further price appreciation.
The ongoing impact of the Federal Reserve’s monetary policy on risk assets, including cryptocurrencies, remains a central factor. Future movements in Bitcoin’s price will likely depend on whether the $61,000-$63,500 support zone holds and if institutional investment shows signs of increasing. Market participants will continue to watch for shifts in global economic sentiment and their potential effects on crypto valuations.