Bitcoin Price Falls Toward $64K After Fed Hawkish Stance, More Dip Incoming?

TLDR

Bitcoin fell from $66,315 to an intraday low of $63,683 after the Fed decision. The Fed held rates at 3.50% to 3.75% and projected fewer rate cuts. Bitcoin spot ETFs posted $82.16M in net outflows on June 17. Wallets holding over 1 BTC now control more than 16.8M BTC. Whale wallets with at least 1,000 BTC now hold 7.17M BTC.

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Bitcoin price has fallen back toward the $64,000 level after the Federal Reserve kept interest rates unchanged and delivered a hawkish policy outlook, reversing a relief rally that had followed easing Middle East tensions.

Bitcoin climbed to an intraday high of $66,315 on June 17 before selling pressure increased after the Fed decision. The price dropped about 4% to an intraday low of $63,683 during early June 18 trading, before recovering slightly to around $64,444.

The move came after the Fed held rates at 3.50% to 3.75% and released a dot plot showing fewer expected rate cuts. Markets also reacted to comments from Fed Chair Kevin Warsh, who signaled a shift away from traditional forward guidance, adding uncertainty to the rate outlook.

Fed Outlook Erases Bitcoin Relief Rally

Bitcoin had rallied earlier as traders responded to reports that the United States and Iran had formally implemented an interim peace agreement. The deal included reopening the Strait of Hormuz and removing restrictions on Iranian oil exports, which helped lower energy risk and supported risk assets.

That relief faded after the Fed’s policy update pushed investors back into a cautious stance. A hawkish rate outlook tends to pressure Bitcoin because higher-for-longer rates reduce liquidity expectations and can strengthen demand for safer assets over speculative markets.

The Fed decision also affected broader crypto sentiment. Ethereum spot ETFs recorded $29.37 million in net outflows on June 17, while Bitcoin spot ETFs posted $82.16 million in total net outflows, according to SoSoValue data.

Fidelity’s FBTC was an exception among Bitcoin funds, recording the largest single-day inflow at $14.02 million. The mixed ETF data showed that some institutional buying continued, even as overall flows remained negative during the latest risk-off move.

Bitcoin Tests $64K Support as Downside Levels Return

Bitcoin’s technical setup now centers on the $64,000 support area. Analysts have warned that a failure to hold this level could open another move toward the $61,000 to $62,000 range.

The next major downside levels sit near $62,000 and $60,000, both of which have acted as important support zones during recent volatility. A deeper break below those levels would increase concern that the market has not yet completed its correction.

Source: Cryptoquant

For now, Bitcoin remains in a key support test rather than a confirmed breakdown. The recovery from $63,683 to around $64,444 suggests buyers remain active near the lower end of the range, but stronger follow-through is needed to stabilize the chart.

Spot average order size data showed that large and smaller whale orders remained active during the correction zone. Market commentary suggested that large capital flows have begun to reappear, helping to reduce selling pressure as Bitcoin tests support.

Whale Holdings Rise During Market Pullback

On-chain data showed that larger Bitcoin holders continued accumulating during the decline. Addresses holding more than 1 BTC now control more than 16.8 million BTC, marking a new all-time high for that cohort.

Santiment data also showed that wallets holding at least 1,000 BTC increased their combined holdings to 7.17 million BTC. These whale addresses now account for 35.82% of available supply, with 2,044 addresses holding at least 1,000 BTC.

Source: X

The rise in whale balances suggests larger holders are using the pullback to add exposure, even as short-term traders react to macro uncertainty. Retail accumulation also appears to be resuming, though more cautiously, with smaller holders estimated to control around 1.7 million BTC.

Some retail investors may have reduced direct holdings during earlier rallies, while others may have shifted exposure into spot ETFs. The latest data shows both large holders and smaller investors are again showing signs of accumulation, although ETF flows remain uneven.

Bitcoin’s next direction depends on whether buyers can defend $64,000 and whether macro conditions stabilize after the Fed’s hawkish update. A reclaim of $66,000 would improve short-term momentum, while a loss of $64,000 could shift attention back to $62,000 and $60,000 support.