Bitcoin slid below the $64,000 level on the fallout from the U.S. Federal Reserve’s shift to a hawkish stance, falling to around $62,000 intraday.

On June 18 (local time), blockchain media outlet Bitcoin Magazine reported that bitcoin fell about 4 percent after sliding from a June 17 high of $66,315 to around $62,000 early in the June 18 session. It later hovered near $62,500, but momentum remains weak.

The drop is centred on changes in monetary policy. The Fed held its benchmark rate at 3.50 percent to 3.75 percent but signalled a more restrictive path through updated projections. Policymakers lowered expectations for rate cuts and left open the possibility of further hikes. Fed Chair Kevin Warsh also mentioned stepping back from pre-emptive policy signalling, increasing uncertainty across financial markets.

The market reaction appeared in a typical risk-asset avoidance move. Cryptocurrencies weakened along with growth stocks, while the U.S. dollar index rose to its highest level in more than a year. Higher Treasury yields and a stronger dollar structurally weigh on liquidity-sensitive bitcoin. Oil prices fell to around $75 a barrel after the Strait of Hormuz reopened and Iranian oil exports resumed under a temporary agreement between the United States and Iran, but bitcoin did not respond.

The options market has also emerged as a burden. About $10.5 billion in open interest is tied to the bitcoin options expiry scheduled for June 26. Call options are concentrated at the $80,000 strike, while put demand has piled up near $60,000. The current "max pain" price is $74,000, well above the spot price.

Key technical levels are also clear on the chart. Bitcoin remains below the 61.8 percent retracement area near $65,000 and a trend resistance line around $68,400. The relative strength index (RSI) has fallen back to neutral, and money-flow indicators point to slowing buying pressure. Trend indicators also keep a selling advantage in the downtrend that has continued since the May peak.

Short-term liquidity is concentrated above the $65,000 to $67,000 area, around $63,500, and below $62,000. These are seen as levels where the price can be pulled as leverage builds.

Market participants are especially watching whether the $62,000 level holds. If it breaks, $60,000 and levels below the June low are cited as the next support. If macroeconomic pressure intensifies, bitcoin is also seen as potentially falling into the $50,000 range.

Institutional flows are also not supportive. U.S.-listed spot bitcoin exchange-traded funds (ETFs) have recorded net outflows over several recent trading days. That signals weakening demand from large investors. The Coinbase premium index has also stayed negative, indicating weak buying strength among U.S. investors.

But it is not all downside signals. The number of wallets holding more than 1,000 BTC has risen to its highest level since March, and exchange balances have also fallen, showing a continued tendency toward long-term holding. Short-term sentiment and long-term accumulation appear to be moving in opposite directions.

For now, the market is likely to look for direction within a $60,000 to $70,000 range. If bitcoin recovers $65,000 and then moves back above $67,000, expectations for another attempt at $70,000 could revive. If it fails to defend current support, the risk of further declines could grow as long as Fed-driven macro pressure persists.