Bitcoin (BTC) slipped back toward the $64,000 level after a hawkish outlook from the Federal Reserve erased a brief relief rally that had been sparked by easing tensions in the Middle East.
Price Swing and Federal Reserve Decision
Data from crypto.news shows that Bitcoin surged to an intraday peak of $66,315 on June 17 before reversing sharply and touching $64,103 in early trading on June 18. The reversal coincided with the Federal Reserve’s decision to hold interest rates steady at 3.50%–3.75% while unexpectedly signaling the possibility of additional hikes in 2026. The announcement arrived just hours after reports of a preliminary U.S.–Iran framework had lifted risk appetite across crypto and equity markets.
Market Sentiment and Investor Reaction
Before the Fed’s pronouncement, traders welcomed news of a potential agreement that could reopen the Strait of Hormuz and ease pressure on global energy supplies, prompting oil prices to retreat from recent highs. Bitcoin’s brief rally triggered more than $150 million in short liquidations, forcing bearish positions to unwind as the price breached the $66,000 threshold. Investors now debate whether the $64,000 support zone can stave off a deeper pullback toward June’s lows.
Structural Demand and ETF Outflows
Institutional appetite for Bitcoin remains muted, with U.S. spot Bitcoin exchange‑traded funds recording net outflows over the past several weeks. The continued drain on ETF inflows removes a key source of structural demand that previously bolstered price rallies. As blockchain investors watch the market, the lack of fresh capital may limit Bitcoin’s ability to recover without broader macroeconomic relief.