Bitcoin is trading near the $64,000 mark on Thursday despite a hawkish Fed outlook, and the "higher-for-longer" projection has pressured risk assets, effectively stalling the recovery attempt from early-June lows. The cryptocurrency was trading near the $63,993 mark.
In the past 24 hours, Bitcoin and Ethereum were down 2.44% and 3.16% respectively. Among the major altcoins, BNB, XRP, Solana, Hyperliquid, Dogecoin and Cardano corrected up to 3.87%, whereas Tron was up 0.64%.
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Akshat Siddhant, Lead Quant Analyst at Mudrex, said sentiment has also been affected by concerns around potential Bitcoin sales from Strategy. While long-term holders continue to accumulate, the immediate price action is dominated by liquidations of leveraged long positions that were caught offside by the Fed’s policy adjustments.
He further said that market participants are now focusing on the $61,000–$63,500 support zone, which must hold to prevent a deeper slide towards $55,000, while resistance stands at $67,500.
The global crypto market capitalisation edged down 2.24% to $2.2 trillion, according to CoinMarketCap.
Vikram Subburaj, CEO at Giottus, said Bitcoin was trading near $64,600 on June 18. Markets remained volatile as investors reacted to ETF outflows and changing expectations around US monetary policy. Broader risk-off sentiment also weighed on investor confidence.
Subburaj further said that the asset has recovered from its recent lows and is holding above key support levels. However, institutional participation remains subdued. As a result, the market is still searching for stronger signs of sustained demand.
In the past week, Bitcoin and Ethereum were up 2.35% and 5.07% respectively. Among the major altcoins, BNB, Tron and Dogecoin fell less than 1%, whereas XRP, Solana, Hyperliquid and Cardano gained up to 28%.
WazirX market desk said the latest signals from the US Federal Reserve suggest that inflation remains a key concern for policymakers, and that could have important implications for crypto markets over the coming months.
Overall, while the Fed's updated outlook may create investor sensitivity towards risk assets, it also reinforces the broader investment case for Bitcoin.
(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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