Bitcoin Under Pressure, Fed and Iran Weigh on Sentiment
Bitcoin weakened during the European session on Friday (June 19th) and hovered near its daily low, as investors reduced exposure to riskier assets following the Federal Reserve's hawkish signal. BTC was seen around $62,596, with a daily range of $62,263 to $64,415.
The main pressure came from the prospect of higher US interest rates. The Fed previously maintained interest rates but left room for a hike this year as inflation remains a concern. This situation is less supportive for Bitcoin because crypto assets are highly sensitive to liquidity, yields, and interest in speculative instruments.
Sentiment was also weighed down by the delay in US-Iran talks in Switzerland. Reuters reported that the meeting scheduled for Friday in Bürgenstock was canceled after US Vice President JD Vance withdrew from the trip, while the implementation of the initial agreement still awaits further confirmation.
The delay raises doubts about the durability of the US-Iran peace deal, even though oil flows through the Strait of Hormuz have begun to recover and the US has lifted its naval blockade. Unresolved geopolitical risks have driven risk-on flows into AI and semiconductor stocks, rather than crypto.
From an institutional perspective, crypto ETF fund flows have also not provided strong support. CoinDesk reported Bitcoin and Ether ETFs recorded outflows after the Fed's hawkish tone and the likelihood of interest rate cuts faded. This condition indicates that institutional demand for crypto remains fragile.
Pressure is also visible on major altcoins. Ethereum is around $1,696.57, Solana at $68.60, and XRP at $1.13, all weakening following Bitcoin.
The market's next focus will be on the direction of Treasury yields, the US dollar, spot ETF flows, and new developments related to US-Iran negotiations. As long as the Fed remains hawkish and diplomatic uncertainty persists, Bitcoin has the potential to remain defensive under pressure from global liquidity. (arl)
Source: Newsmaker.id
