Bitcoin Slips Under $63K Support: Fed Signals Fuel Fresh Drop Fears
Bitcoin Falls Below $63,000: What Triggered the Move
Bitcoin price fell below the important <63,000 support level> on Thursday. The drop came after the US Federal Reserve gave a hawkish update on rates. This move overshadowed some good news on global tensions easing.
The price action showed clear weakness. Bitcoin broke the 78.6 percent Fibonacci retracement near 63,173 dollars. This leaves room for more selling pressure in the short term.
Why the Fed Update Hurt Bitcoin
Policymakers kept rates steady at 3.50 to 3.75 percent. But new forecasts pointed to higher rates for longer. They also cut hopes for quick rate cuts later this year. Chair Kevin Warsh hinted at less forward guidance going forward. This added uncertainty for risk assets like Bitcoin.
Spot Bitcoin ETFs saw net outflows of 82.2 million dollars that day. Over 130 million dollars in long positions got wiped out in liquidations. These flows made the price move sharper.
Next Support Zones to Watch
Analysts now eye the 60,000 to 62,000 dollar area as the next key zone. If Bitcoin holds here, a bounce back toward 64,000 dollars stays possible. A clean break lower could open the door to 55,000 dollars if ETF selling keeps up.
Market Makers Stay Cautious
Wintermute warned that better headlines do not mean the bottom is in. The firm pointed to ongoing ETF outflows, slow stablecoin growth, and weak treasury buying. Fresh capital has not returned yet. They said flows matter more than price or news right now. Bitcoin could still test the 50,000s before any real recovery starts.
Long-Term Bulls Stay Calm
Coinbase CEO Brian Armstrong said he remains very bullish. He told investors to focus on the bigger picture instead of daily swings. Armstrong expects Bitcoin to trade much higher by 2030 and still holds his long position.
Investor Mike Alfred also sees a strong rally ahead. He thinks Bitcoin could reach 150,000 to 250,000 dollars in the next big move once rates ease. He believes the asset will eventually hit one million dollars over time.
Even Critics Ease Their Tone
Economist Peter Schiff slightly softened his view. He now says Bitcoin may not go to zero. Still, he believes the asset offers weak long-term value and has traded sideways for years despite heavy inflows.
Bottom Line
Bitcoin faces short-term pressure from Fed policy and ETF selling. The 60,000 to 62,000 dollar zone will decide if the correction deepens or if buyers step in. Long-term holders continue to focus on higher targets by the end of the decade.
