Bitcoin remains under pressure and is trading near the $62,500 mark on Friday amid Fed uncertainty and subdued institutional flows. The cryptocurrency was trading near the $62,549 mark.
Ethereum fell 2.33% to trade near the $1,689 mark, while Bitcoin fell 1.90% in the past 24 hours. Among the major altcoins, BNB, XRP, Solana, Hyperliquid, Dogecoin, and Cardano fell up to 4%, whereas Tron was up 0.12%.
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Vikram Subburaj, CEO, Giottus, said the world's largest cryptocurrency remains under pressure, institutional demand continues to be subdued, and expectations of restrictive monetary policy are also weighing on sentiment.
He further said that Bitcoin has recovered from its early-June lows near $59,000. However, the market has yet to find a convincing catalyst for a sustained breakout. While the worst of the outflow cycle appears to have eased, institutional participation remains significantly below the levels seen earlier this year.
The global crypto market capitalisation declined 2.31% to $2.16 trillion, according to CoinMarketCap. The BTC price drop below $63,000 seems to have triggered the sell-off, as the market cap fell to $2.17 trillion, said CoinDCX Research Team.
Akshat Siddhant, Lead Quant Analyst, Mudrex, said Bitcoin is consolidating around the $63,000 level as markets digest delays in the final peace deal and hawkish comments by the Fed. While the memorandum of understanding between the U.S. and Iran initially supported sentiment, delays in finalising the agreement and concerns over potential escalations involving Israel have prompted a cautious response from investors.
The move also triggered a $330 million liquidation of long positions, amplifying downward pressure, Siddhant added.
In the past week, Bitcoin was down 1.84%, while Ethereum was up 0.65%. Among the major altcoins, BNB, XRP, Dogecoin, and Cardano fell up to 7%, whereas Solana, Tron, and Hyperliquid gained up to 12.41%.
CoinSwitch Markets Desk said BTC pulled back below $63K, with the primary catalyst being the Fed's hawkish shift. With fresh capital entering BTC at a measured pace, this has added near-term pressure.
Here is what other analysts say:
Piyush Walke, Derivatives Research Analyst, Delta Exchange: ETF flows remain uneven, with BTC and ETH spot ETFs seeing outflows on June 18, showing institutional demand has not returned. Bitcoin also faced rejection at its 200-day moving average, a key technical resistance level, signalling weakening bullish momentum and increasing the risk of further downside in the near term.
WazirX Markets Desk: Prediction market participants have increased the probability of Bitcoin reaching $84,000 to 37%, suggesting investors remain optimistic if inflation pressures begin to ease.
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Avinash Shekhar, Co-Founder & CEO, Pi42: Bitcoin and the broader crypto market remain under pressure after the Federal Reserve struck a more hawkish tone, prompting investors to reassess exposure. While the immediate reaction has been cautious, the market focus is increasingly shifting from macro headlines to whether demand can continue absorbing supply at current levels.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
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