BTC price rejects at $23K as US dollar declines from fresh 20-year highs

Logo Bitcoin

BTC price rejects at $23K as US dollar declines from fresh 20-year highs

The Fed rate hike does not offer much relief as a downtrend in stocks resumes, dragging Bitcoin with it.

BTC price rejects at $23K as US dollar declines from fresh 20-year highs

Bitcoin (BTC) ran out of steam near $23,000 on June 16 after the biggest United States key rate hike in nearly thirty years.

BTC price rejects at $23K as US dollar declines from fresh 20-year highs

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Dollar strength wobbles after rate hike news

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reaching highs of $22,957 on Bitstamp after the Federal Reserve confirmed a 0.75% hike in June — its largest since 1994.

Momentum did not last long, however, and at the time of writing, the pair had shed $2,000 to return to $21,000 at the new Wall Street open.

Popular trader Crypto Tony eyed the U.S. dollar on the back of the Fed’s decision, with an about-turn in USD strength key to a possible Bitcoin bottom.

The U.S. dollar index (DXY), after spiking to twenty-year highs again after the announcement, began retracing through June 16.

“Coming up to a big resistance zone on the dollar, which if we can reject from here and dump. The Bitcoin bottom may be in soon,” he told Twitter followers.

Due to a combination of a strong dollar and ongoing quantitative easing — not tightening — USD/JPY hit its highest since the late 1990s this week.

Both economies’ struggles were covered by Arthur Hayes, former CEO of derivatives platform BitMEX, in blog posts on Bitcoin’s future in recent months. 

For Hayes, the macro turmoil, which would ultimately cement Bitcoin’s status, was already playing out but the pain would precede any form of relief for the largest cryptocurrency and its investors.

USD/JPY 1-month candle chart. Source: TradingView

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Rate article
( No ratings yet )
FORECRYPTO