Bitcoin slid to the $64,000 level ahead of the U.S. Federal Open Market Committee (FOMC) meeting.

On June 17 local time, blockchain outlet Cointelegraph reported that the market sees not only the Fed’s rate decision but also the possibility of future bitcoin selling by Strategy as a short-term burden.

Market participants watched for the possibility that bitcoin weakness could persist ahead of this FOMC meeting. Events ahead of a rate decision have typically been seen as factors that increase downward pressure on bitcoin prices, but the CME Group’s FedWatch tool was assessed as showing that the possibility of a rate cut at this meeting has effectively not been priced in.

Supply and demand worries surrounding Strategy also resurfaced. QCP Capital said in a recent analysis that factors beyond the Fed are also weighing on bitcoin prices. It said Strategy sold 32 bitcoins in May to increase its liquidity capacity, but the market continues to be on guard for the possibility of additional sales ahead.

QCP Capital, however, said that if Strategy continues issuing shares and secures more liquidity capacity, market sentiment could again be reflected in bitcoin. It said that while short-term negative factors remain, there is room for a price recovery if structural liquidity risks ease.

The Fed factor was also cited as key. QCP Capital said new Fed chairman Kevin Warsh would chair his first meeting on the day and would need to strike a balance between inflation trends and pressure from U.S. President Donald Trump to cut rates.

Andre Dragosch (안드레 드라고슈), head of research at Bitwise Europe, also warned of monetary policy uncertainty. He said the market is increasingly pricing in the possibility of rate hikes through year-end, which could weigh on cryptocurrencies and risk assets. He also wrote in a post on X, formerly Twitter, that uncertainty remains high over whether Warsh is hawkish or dovish in a period of rising inflation.

Ultimately, bitcoin’s short-term direction is developing in a structure shaped simultaneously by signals on the Fed’s rate path and supply and demand concerns tied to Strategy. As a result, the bitcoin market is expected to determine its short-term direction after the FOMC, depending on the Fed’s monetary policy message and changes in Strategy’s holding strategy.

Happy FOMC Day Today is Warsh's first meeting as Fed governor. The market is currently expecting no change but is also anticipating almost a full hike until year-end 2026. The Fed will also publish its Summary of Economic Projections today (aka "dot plot"). IMO still a… pic.twitter.com/mmZUug45wA