The crypto market has fallen 4.48% to $2.15 trillion in 24 hours. Bitcoin fell below $63,000, dropping $2,000 in just two and a half hours and $200 million in long positions being liquidated in four hours.
Ethereum is down 4.97% to $1,685. XRP is down 6.25% to $1.13. Solana fell 6.92% to $68.69. The Fear and Greed Index is at 19, in the extreme fear category.
What Caused the Fall
The Federal Reserve held interest rates unchanged on June 17 but gave a very hawkish signal on the way forward, showing a few drops in the rate than the markets had rates.
Bitcoin withdrawals reached $101.68 million in 24 hours with 71% of them being long positions. More than $200 million in total crypto holdings were liquidated within four hours as trading plunged into the market.
Bitcoin is now working above $62,000 to $64,000 support. Traders have so far failed to trigger a major breakout but the currency is set at around $68,000 above, meaning that any attempt will face a large group of resistance before building momentum.
Worth Watching
Three factors will determine where the market goes from here.
The $2.1 trillion market is at an annual low and the latest technology. Holding above it makes it possible to increase to $2.22 trillion pivot. A break below opens the door for a deeper correction to the 78.6% Fibonacci retracement level.
Bitcoin dominance is currently at 58.19%. The stability of that number may indicate that the market is recovering rather than continuing to convert altcoins into coins or stablecoins.
The discussion of the CLARITY Act in the United States Senate represents the best way forward in the near future. The long-term clarity has been a major catalyst for XRP and the crypto market. Advances in this direction may change the current situation in the near future.
The next release of the US CPI data and the additional comment of the Fed will give a clear signal if the hawkish pivot is a change of one meeting or a long-term change in the level of the place that keeps the pressure on the crypto in the summer.
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