Bitcoin and major cryptocurrencies declined even after the US-Iran peace agreement, as markets reacted to the Federal Reserve’s hawkish stance on interest rates.
Key Highlights:
- Bitcoin fell nearly 3% in the last 24 hours.
- US-Iran peace agreement failed to boost crypto sentiment.
- Fed Chair Kevin Warsh signaled a tough stance on interest rates.
- Bitcoin ETF outflows reached $141 million.
- Ethereum and Solana also recorded significant declines.
- Analysts say ETF flows and interest rate outlook remain key market drivers.
New Delhi, June 18: Cryptocurrency markets remained under pressure on Wednesday despite the signing of a peace agreement between the United States and Iran, an event that many investors had expected would trigger a broader market rally.
Bitcoin fell nearly 3 percent over the past 24 hours to around $63,844, reversing the brief gains seen immediately after news of the agreement emerged. Market participants attributed the decline primarily to concerns over US monetary policy after Federal Reserve Chair Kevin Warsh signaled that interest rates are likely to remain elevated for longer, reducing expectations of near-term rate cuts.
Adding to the pressure, Bitcoin exchange-traded funds (ETFs) recorded outflows of approximately $141 million during the period. Analysts believe Bitcoin could regain momentum if it manages to hold above the $64,000 support level and ETF outflows begin to stabilize.
The weakness was not limited to Bitcoin. Ethereum declined 3.54 percent to around $1,729, while Solana dropped 3.44 percent to approximately $71. The broader cryptocurrency market also fell by more than 2.5 percent as investors reduced exposure to risk assets amid uncertainty over future interest rate decisions.
Market experts note that periods of correction are often viewed by long-term investors as opportunities to accumulate assets at lower prices. However, they caution that volatility is likely to remain high until there is greater clarity on monetary policy and institutional investment flows.
