Bitcoin Tumbles to $62,000! Hawkish Fed Sparks Fear of Deeper Crypto Crash

Bitcoin price slipped below key support near $64,000 after a hawkish shift from the Federal Reserve erased gains tied to easing geopolitical tensions, placing the market at risk of a deeper pullback toward the $60,000 range.

The bitcoin price fell from a June 17 high of $66,315 to an intraday low near $62,000 during early June 18 trading, marking a 4% decline.

The price action stabilized near $62,500, though momentum remains fragile as macro pressure builds.

The Federal Reserve held its benchmark rate steady at 3.50% to 3.75% but signaled a tighter policy path through updated projections.

Policymakers reduced expectations for rate cuts and left open the possibility of further hikes.

Chair Kevin Warsh also indicated a shift away from forward guidance, adding uncertainty across financial markets.

The reaction triggered a broad risk-off move, and crypto markets declined alongside equities tied to growth and liquidity, while the U.S. dollar index climbed to its highest level in over a year.

The rising yields and a stronger dollar tend to weigh on assets such as Bitcoin that rely on abundant liquidity.

The decline came despite a supportive geopolitical development, and the United States and Iran implemented an interim agreement that reopened the Strait of Hormuz and allowed Iranian oil exports to resume.

Oil prices fell toward $75 per barrel, a move that would usually support risk assets.

Bitcoin failed to respond, underscoring the dominance of monetary policy in shaping near-term sentiment.

According to Bitcoin Magazine Pro data, attention has also turned to the upcoming June 26 Bitcoin options expiry, which carries roughly $10.5 billion in open interest, and call options cluster near the $80,000 strike, while put demand has built near $60,000.

The current “max pain” level sits near $74,000, far above spot prices, leaving many bullish positions under pressure and increasing the likelihood of hedging flows.

From a technical perspective, Bitcoin's price momentum has distinctly cooled, and the Relative Strength Index (RSI) has shifted towards neutral territory, while money flow indicators clearly show a reduction in buying pressure.

On the daily chart, Bitcoin continues to trade below key resistance levels, including the critical 61.8% Fibonacci retracement mark near $65,000 and a broader trend resistance line positioned near $68,400.

The trend indicators consistently favor sellers, reflecting a continuation of the downtrend that initiated after the May highs, suggesting persistent bearish sentiment.

Liquidity data highlights key Bitcoin price levels. Major liquidation zones sit between $65,000 and $67,000, while strong support lies around $63,500 and $62,000, and these areas are likely to attract price movement as market leverage increases.

The traders are watching the$62,000 level closely, and if it fails, Bitcoin could decline toward $60,000 or lower.

In a more bearish scenario driven by worsening macro conditions, prices could retrace toward the $50,000 region.

Institutional investor activity remains a challenge for Bitcoin. U.S. spot Bitcoin ETFs have seen steady outflows, while the Coinbase Premium Index remains negative, signaling weaker demand from U.S. investors.

However, some positive signs remain: large Bitcoin holders have increased their accumulation, and declining exchange reserves suggest continued long-term holding.

For now, Bitcoin appears range-bound between $60,000 and $70,000, and amove above $67,000 could restore bullish momentum and push prices toward $70,000, while losing key support levels may increase downside risks as Federal Reserve policies continue to influence market sentiment.