On June 15, Bitcoin (BTC) remained under $25,000 after a sudden response to changes in United States economic policy led to three-month lows.
Hawkish Powell “all bark, no bite”
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was stabilizing after the previous day’s losses of more than 3%.
The U.S. Federal Reserve, as expected, has taken a break from raising interest rates – the first since 2021 – while maintaining an assertive stance. Jerome Powell, the Fed chair, intimated that further rate hikes could be necessary to control inflation.
At the press conference, he stated that, in accordance with the opinion of the Federal Open Market Committee (FOMC), the majority of committee members believed that it would be suitable to increase interest rates further before the end of the year, as he had previously mentioned.
Data from CME Group’s FedWatch Tool on the day indicated that markets were placing more than a 70% chance of a hike at the upcoming FOMC meeting in July.
The mixed signals had a further detrimental effect on the already weak crypto price performance.
Not everyone was pessimistic about the prospects, though. Examining the Federal Reserve event, Keith Alan, co-founder of Material Indicators observatory, characterized Powell as “all talk, no action.”
“He sent out a very hawkish message to try and calm the markets, but he ended up taking a very dovish stance,” he informed his Twitter followers.
A chart that was included showed the major support zones for BTC/USD that have been created over the last six years since its prior all-time high of $20,000.
More BTC price volatility to come
It is possible that the situation regarding the price of BTC could become even more fascinating, according to analysis.
Glassnode has reported that the US Bitcoin supply has dropped by more than 10% in the last year.
Spot, as noted by the trading suite Decentrader, was nearing a region of leveraged long liquidity.
Maartunn, a contributor at on-chain analytics platform CryptoQuant, stressed on the day that volatility is imminent.
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