Bitcoin Retreats as Fed’s Hawkish Stance Halts $70K Rally

On June 13, Bitcoin (BTC) gave back the gains it had made the previous day, as the market prepared for the latest U.S. inflation data. Bitcoin’s attempt to hold onto the Consumer Price Index (CPI) driven gains faltered, with the price of BTC/USD reversing course shortly after reaching the $70,000 mark. By the time of this writing, Bitcoin had dropped to new lows of $66,983 on Bitstamp, reflecting a decrease of around 1.3% for the day.

The previous excitement surrounding Bitcoin was fueled by lower-than-expected CPI readings, leading to optimism. The Federal Reserve’s ongoing meeting on interest rates remained predictably restrictive. The Fed’s Chair, Jerome Powell, delivered commentary that unsettled risk assets by reinforcing that discussions about reducing interest rates weren’t on the table yet. “We think policy is restrictive. And we think, That if you just set policy at a restrictive level, eventually you will see real weakening in the economy,” Powell told reporters at a press conference.

Powell’s comments made it clear that the Federal Reserve believes substantial rate cuts could be further off than some market participants had hoped. This was evident when he remarked, “Since we raised rates this far, we’ve always been pointing to cuts at a certain point.” As a result, betting on a rate cut at the Federal Reserve’s September meeting dropped by roughly 10%, according to data from CME Group’s FedWatch Tool.

Financial analysts reacted quickly to the latest developments. Tedtalksmacro, a financial commentator, expressed on X (formerly Twitter) that the Federal Open Market Committee’s (FOMC) stance was more hawkish than anticipated. He noted, “The market had already priced for this scenario leaving the real takeaway from today to be that disinflation continues (via CPI data). That’s pretty clear from how stocks have moved… Crypto will follow.”

When examining Bitcoin’s price movements, trading resource Material Indicators highlighted the impact of Bitcoin whales on the day’s price swings. “Watching Bitcoin completely retrace the morning pump is more evidence that these Killer Whale Games are playing out precisely as I’ve been outlining in my analysis since Friday,” a post on X explained. Material Indicators attributed these price fluctuations to changes in order book liquidity, influenced by external factors like U.S. economic data.

Looking at the bigger picture, Material Indicators argued that the overall scenario hadn’t changed drastically. They emphasized $69,000 as a critical level for Bitcoin to establish as support. “Everything you need to know is in the charts,” their analysis read. The post underlined that maintaining this support level was crucial for Bitcoin’s price range, stating, “In my opinion, what matters most is that we don’t print a lower low, and that BTC eventually validates a resistance/support flip at $69k. Until then, BTC will remain range bound.”

As Bitcoin continues to navigate macroeconomic uncertainties, the interplay between market expectations and actual policy measures will likely keep the cryptocurrency’s price fluctuating. External economic factors, such as inflation data and Federal Reserve policies, will continue to play a significant role in shaping short-term price dynamics. Market participants will closely watch key levels like $69,000 to gauge Bitcoin’s long-term trajectory.

The cryptocurrency market remains sensitive to broader economic signals, and Bitcoin’s fluctuations underscore the ongoing volatility within the sector. This period of turbulence highlights the complex relationship between macroeconomic policies and digital assets, inviting further scrutiny and analysis from traders and analysts alike.

Lenard Lao

Lenard Lao

43 thoughts on “Bitcoin Retreats as Fed’s Hawkish Stance Halts $70K Rally

  1. Jerome Powell’s impact on risk assets is undeniable. BTC will bounce back stronger! 💥💎

  2. You’re telling me the price dropped over 1% in a day because of some Fed talk? Not cool, man

  3. Interesting to see how BTC reacted to Powell’s comments. Time will tell how strong that $69k support is. 🕒💪

  4. The interplay between Bitcoin and inflation data keeps things interesting! Keep an eye on those charts!

  5. Loved the detailed insightsBitcoin is truly at the mercy of broader economic signals.

  6. Bitcoins volatility keeps things exciting! Let’s see how it responds to the next inflation data.

  7. Inflation and Fed policies are such strong drivers. Bitcoin remains a resilient force in this market!

  8. This constant back and forth with Bitcoin’s price because of external economic factors is so tiring

  9. What a rollercoaster! Yet another reminder of Bitcoin’s dynamic nature. Stay strong, hodlers!

  10. Every time I think Bitcoin is going to surge, it crashes again. Too volatile for my liking

  11. Great analysis! Disinflations impact on the market is critically important. Let’s see where BTC heads next!

  12. Despite the dip, the $69,000 support remains a key focus. Long-term optimistic for BTC!

  13. Ugh, another downturn for Bitcoin! All that excitement for nothing 😔💔

  14. Even with these dips, my confidence in Bitcoin’s long-term potential remains unshaken. 🚀🪙

  15. It’s amazing how sensitive BTC is to macroeconomic changes. This volatility is part of the game!

  16. Whale activity once again shows its massive influence. Always crucial to watch those orders!

  17. Material Indicators nailed it—the importance of $69,000 cannot be overstated. Hold strong, BTC! 📊📈

  18. With the Fed being so restrictive, I’m starting to lose hope in BTC’s growth prospects 😓🔒

  19. Another fascinating day in crypto. The Feds stance definitely shakes things up!

  20. So frustrating that BTC drops every time there’s any news about the Fed. Can’t catch a break! 😠📉

  21. Wow, what a day for Bitcoin! These market swings definitely keep us on our toes.

  22. Market fluctuations are stressful, but Bitcoins potential keeps me invested. Here’s to resilience!

  23. BTC’s fluctuations today were wild. Excited to see how it will stabilize at key support levels!

  24. I don’t understand why BTC keeps crashing every time inflation data or Fed policies come up. Very annoying! 😫📉

  25. Bitcoins ups and downs make for a thrilling ride. Staying optimistic about its future!

  26. Tedtalksmacros insights are always on point. Disinflation is a silver lining for crypto!

  27. Market can’t seem to decide what to do with these CPI readings. So much for stability in crypto 🌩️🔍

  28. Even with the dip, Bitcoin’s resilience is impressive. $69k support is definitely a critical level!

  29. Bitcoins response to U.S. economic data is consistently intriguing. Thanks for the analysis!

  30. Bitcoin couldn’t even hold $70k for a day… Guess we’re not seeing a bull run anytime soon

  31. BTC might be down today, but its potential remains sky-high. Buckle up for the ride!

  32. Whale games or not, Bitcoin will rise again! Keeping faith in those critical support levels.

  33. Material Indicators always provide valuable insights. Watching those key levels closely!

  34. Fascinating analysis! The way BTC reacts to the Fed’s policies never ceases to amaze. 🤯🏦

  35. Powell’s comments always make me nervous. Back to square one for BTC 📉🧐

  36. Macro factors are so crucial for BTCs trajectory. Holding strong for better days ahead!

  37. Wow, can we even trust any rally now? Back to the drawing board with these “gains” 🥲🙄

  38. Market reactions are so fascinating. Glad to see disinflation continues despite the Bitcoin dip.

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