Bitcoin (BTC) ran out of steam near $23,000 on June 16 after the biggest US key rate hike in nearly thirty years.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

The strength of the dollar falters after the news of the rate hike

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting a high of $22,957 on Bitstamp after the Federal Reserve confirmed a 0.75% gain in June, the largest since 1994.

However, the momentum did not last long and at the time of writing the pair had lost $2,000 to get back to $21,000 at the new Wall Street open.

Popular Crypto Trader Tony eyed the US Dollar following the Fed decision, with a turn in USD strength key for a potential Bitcoin bottom.

The US dollar index (DXY), after hitting twenty-year highs again after the announcement, started to pull back until June 16.

“Getting to a big dollar resistance zone, what if we can turn down from here and pull. Bitcoin bottom may come soon,” he said. saying Twitter followers.

“However, I am looking for another touch before the drop, which coincides with another leg lower in $BTC, so keep an eye on this.”

1-day candlestick chart of the US dollar index (DXY). Source: TradingView

Meanwhile, veteran trader Peter Brandt, known for his Bitcoin bottom calls, said that a retest of $20,000 would not trigger a genuine recovery but rather a “relief rally”.

“Basically, the bear market is nowhere near over for crypto. I was expecting a nice rally here, but the market may need more time,” commenter Josh Rager commented. additional part of a tweet.

EU and Japan crack show

As US stocks opened lower after bouncing on the Fed news, concerns about other global economies were just as fresh on many traders’ minds.

Related: These 3 Metrics Suggest Bitcoin’s Price Drop Isn’t Over

The European Union was dealing with an explosion in Italian bonds, while in Japan, currency weakness in the yen was becoming increasingly disconcerting.

Due to a combination of a strong dollar and ongoing quantitative easing, not tightening, USD/JPY hit its highest level since the late 1990s this week.

The struggles of both economies have been covered by Arthur Hayes, former CEO of derivatives platform BitMEX, in blog posts about the future of Bitcoin in recent months.

For Hayes, the macro turbulence that would ultimately cement Bitcoin’s status was already unfolding, but pain would precede any form of relief for the largest cryptocurrency and its investors.

USD/JPY 1-month candlestick chart. Source: TradingView

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This post BTC Price Rejects to $23K as US Dollar Falls from New 20-Year Highs

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