Bitcoin (bitcoin) gained momentum near $23,000 on June 16 after the largest key U.S. rate hike in nearly 30 years.
Dollar strengthens after rate hike news
However, the momentum didn’t last long, and at the time of writing, the pair had dropped $2,000 on Wall Street’s fresh open, back to $21,000.
USD Bitcoin It did fail to hold mid-range and fell back to the range low it has held so far.
The low of this range is my bottom line if BTC does not want to revisit the lows and possibly test sub-$20k levels.
— Daan Crypto Trading (@DaanCrypto) June 16, 2022
Popular trader Crypto Tony has his eyes on the U.S. dollar on the back of the Federal Reserve decision, and a shift in the greenback’s strength is key to Bitcoin’s possible bottom.
The U.S. dollar index (DXY) started to pull back on June 16 after surging to 20-year highs again following the announcement.
“A big resistance zone for the dollar is about to be hit, if we can reject and sell from here. Bitcoin bottom could be coming soon,” he said Tell Twitter followers.
Meanwhile, veteran trader Peter Brandt, known for his Bitcoin bottom calls Say A retest of $20,000 will not trigger a real recovery, but rather a “relief rally.”
“Basically, the bear market is far from over for cryptocurrencies. Hope for a nice rally here, but the market may need more time,” commentator Josh Rager Add to part of the tweet.
EU, Japan crack show
Concerns about the rest of the world’s economies were equally fresh among many traders as U.S. stocks opened on the back of a rebound on Fed news.
The European Union is dealing with a blowout in Italian bonds, while in Japan, currency weakness in the yen is becoming increasingly troubling.
— Ansel Lindner (@AnselLindner) June 16, 2022
USD/JPY hit its highest level this week since the late 1990s on the back of a strong dollar and continued quantitative easing (without tightening).
For Hayes, the macro turmoil that finally cemented Bitcoin’s position has played out, but for the biggest cryptocurrency and its investors, pain will come before any kind of relief.
The views and opinions expressed here are those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk and you should do your own research when making a decision.