Bitcoin Plummets Below $65K as Fed Holds Rates, $117M Liquidated!

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<a href="https://investment-policy.com/btc-usd/">Bitcoin</a> Slips Below $65K After Fed Keeps Interest Rates Unchanged

Key Highlights

  • Bitcoin fell after the Fed kept interest rates unchanged for the fourth straight meeting, leading to a short-term price drop.
  • About $117 million in Bitcoin positions were liquidated as traders reacted to the news, with most losses coming from long positions.
  • Market focus is now on Kevin Warsh’s first Fed press conference, while Bitcoin faces rejection near the $66K–$67K resistance zone.

Bitcoin’s price decreased on Wednesday after the U.S. Federal Reserve decided to hold interest rates steady for the fourth consecutive time. The Federal Open Market Committee (FOMC) announced rates would remain between 3.50% and 3.75%, a decision unanimously supported by all 12 voting members, indicating a consensus to maintain the current economic policy.

Although the markets anticipated no changes before the announcement, a reaction still occurred once it was made. Bitcoin, which was holding steady at about $65,300, experienced a small drop in value following the news.

As of today, Bitcoin is priced at $64,853 – a slight decrease of 1.2% from yesterday. Despite this dip, it’s still up around 5% over the last week. Trading volume has increased by about 7% in the past week, reaching $28.1 billion. However, current price movements indicate that this activity is likely due to people selling their Bitcoin holdings.

As a researcher, I’ve observed that investor focus recently turned to Federal Reserve Chair Kevin Warsh’s initial press conference. Everyone was looking for any hints about what direction monetary policy might take.

Fed signals steady growth but warns on uncertainty

This was Kevin Warsh’s first meeting as Federal Reserve Chair, so investors are particularly interested in his upcoming press conference.

Investors are trying to figure out if the Federal Reserve is prioritizing fighting inflation – a more aggressive approach known as being ‘hawkish’ – or if they’re open to lowering interest rates in the future, which would be a more lenient, or ‘dovish,’ stance. The Fed’s recent statement didn’t offer much guidance, and it actually removed wording that previously hinted at potential rate cuts.

The Federal Open Market Committee (FOMC) reported that the U.S. economy continues to grow steadily, despite increased uncertainty related to the situation in the Middle East. They also noted that energy costs are being affected by global events, creating some economic pressure.

The Federal Reserve also reaffirmed its commitment to tackling inflation, stating its goal is to achieve price stability. This signals that the central bank remains dedicated to lowering inflation to its 2% goal.

New economic forecasts indicate that interest rates are now expected to stay higher for longer than previously thought. The predicted federal funds rate for the end of the year has increased to 3.8%, up from 3.4% in March, suggesting that expectations for interest rate reductions have diminished.

$117 million liquidated from the market

After the announcement, roughly $117 million worth of Bitcoin trades were closed out due to losses. Coinglass data shows that about $75.5 million of this – over 64% of the total – came from traders who expected the price to increase (long positions), with an additional $41 million stemming from those betting on a price decrease (short positions). Most of these liquidations occurred on the Binance exchange.

Price action shows rejection from resistance levels

Looking at the price chart on TradingView, we can see how Bitcoin’s price reacted. Before any news broke, Bitcoin was staying above $66,000, specifically around $66,002, and had been moving sideways for the start of the week.

However, the price is now showing strong signs of selling pressure with noticeable downward candles. This decrease also coincides with failed attempts to break through resistance levels at $66,000 and $67,000 – the latter of which has historically been a significant turning point for the asset.

Bitcoin’s price is currently falling and could reach around $60,000, which is its lowest point for the week. The Relative Strength Index is at 40, indicating it’s nearing a point where it might be undervalued, but further price drops are still possible if selling continues.

To avoid sudden, widespread losses, traders should be cautious and closely monitor their positions when important economic news or announcements are released.

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2026-06-17 23:33