Bitcoin price today: Cryptocurrency Bitcoin prices declined in early trading on Thursday, June 18, slipping below the crucial $65,000 mark as investors reacted to a combination of easing geopolitical tensions in the Middle East and a more hawkish outlook from the US Federal Reserve.
The world’s largest cryptocurrency fell $1,320.10, or 2%, to an intraday low of $64,512.2. The decline adds to an already challenging period for Bitcoin, which has lost 16% over the past month, 9% over three months, 24% over six months and nearly 38% over the last year.
The latest round of selling came after the United States and Iran reached an interim agreement aimed at ending hostilities, restoring normal operations through the Strait of Hormuz and easing US sanctions on Iranian oil exports. The development is being viewed as a significant step toward resolving what has been one of the biggest disruptions to global energy supplies in recent years.
Fed’s Hawkish Stance Adds Pressure
Market sentiment was also weighed down by the US Federal Reserve’s latest policy decision. While the central bank left interest rates unchanged on Wednesday, policymakers indicated that borrowing costs could move higher later this year as inflation remains stubbornly above the Fed’s 2% target.
According to the Fed’s latest projections, nine of the 19 policymakers now expect at least one rate hike before the end of the year. The shift reinforced expectations that monetary policy could remain restrictive for longer than previously anticipated.
Higher interest rates tend to reduce the appeal of riskier assets such as cryptocurrencies by increasing returns on safer investments and tightening overall financial conditions. Reflecting this view, US Treasury yields moved higher while the dollar strengthened as traders increased their bets on future rate hikes.
Despite the recent weakness, Bitcoin has shown signs of stabilising after finding strong support in the $62,000-$63,000 range. The rebound from those levels has helped the cryptocurrency recover a portion of its recent losses. However, technical analysts note that the broader market structure remains under pressure following the breakdown from an ascending trend line earlier this month.
Geopolitical Tensions
On the geopolitical front, US President Donald Trump cautioned that military action could resume if Iran’s leadership “doesn’t behave,” underscoring the fragile nature of the current ceasefire arrangement.
The United States and Iran have released details of their interim agreement, which extends the ceasefire announced in April by another 60 days to allow negotiations on a permanent settlement. A 14-point memorandum establishes a two-month negotiation period during which Iran will allow toll-free transit through the Strait of Hormuz, a key route for global oil and gas shipments. The agreement also aims to restore traffic through the strategic waterway to full operating capacity within 30 days.
However, several contentious issues remain unresolved. The preliminary accord does not settle disputes surrounding Iran’s nuclear programme and calls on the US and its allies to develop a $300 billion funding package to support Iran’s economic recovery.
For Bitcoin investors, the combination of improving geopolitical conditions, stronger energy supply prospects and expectations of tighter US monetary policy has created a challenging environment, raising concerns that volatility could remain elevated in the near term.
(with inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
