Bitcoin Price Falls Below Key $63,000 Support — Here’s Why It May Head Lower

Key Takeaways

• Fed policy sparked Bitcoin’s breakdown below key support.

• Some analysts warn the correction may not be over.

• Long-term bulls remain confident despite near-term weakness.

On Thursday, Bitcoin fell below $63,000, a key technical support level, after a hawkish signal from the US Federal Reserve overshadowed easing geopolitical tensions.

It comes as figureheads and analysts continue to share concerns that Bitcoin’s price may be heading lower, despite some bullish executives saying otherwise.

Fed-Driven Selloff Pressures Bitcoin Price

The latest decline was primarily triggered by a more aggressive-than-expected Federal Reserve policy update under Chair Kevin Warsh.

While policymakers left benchmark interest rates unchanged at 3.50%-3.75%, updated projections pointed to a higher-for-longer rate environment and reduced expectations for future rate cuts.

Warsh also suggested the central bank would move away from extensive forward guidance, which would add to investors’ uncertainty.

CoinMarketCap analysis said the shift prompted a broad retreat from risk assets.

The analysis also pointed to institutional selling and leveraged market activity as factors amplifying the decline.

Spot Bitcoin exchange-traded funds recorded net outflows of $82.2 million on June 17, while more than $130 million worth of bullish Bitcoin positions were liquidated during the selloff.

According to CoinMarketCap, Bitcoin’s breach of the 78.6% Fibonacci retracement level near $63,173 leaves the market vulnerable to additional weakness.

The analysis indicated that the next major support zone lay between $60,000 and $62,000.

“If BTC holds the $62,000-$60,000 support zone, a rebound toward $64,000 is possible,” the analysis said.

Adding: “A break below risks a deeper drop toward the $55,000 level, especially if ETF outflows persist.”

Wintermute Warns Bitcoin Price May Not Have Bottomed

Adding to the cautious outlook, crypto market maker Wintermute said investors should not assume that improving sentiment means the market has already reached its lowest point.

In a recent market update, the firm acknowledged that Bitcoin had recovered from lows near $60,000 and benefited from softer inflation data and easing tensions in the Middle East.

However, it argued that conditions remain fragile.

“That’s not the same as the bottom being in,” Wintermute said.

The firm warned that Bitcoin could still revisit significantly lower levels before a sustained recovery emerges.

“It’s not ruled out that we trade into the 50s before any of this improves,” Wintermute added.

Wintermute cited continued outflows from spot Bitcoin ETFs, slowing stablecoin growth, and weaker digital asset treasury activity as signs that fresh capital has yet to return to the crypto market.

“The one thing to watch is flows, not price, not headlines,” the firm said.

Brian Armstrong Remains Bullish

Despite the recent downturn, Coinbase Chief Executive Brian Armstrong said he remains confident that Bitcoin will trade substantially higher by the end of the decade.

Speaking on Peter Diamandis’ podcast, Armstrong urged investors to focus on long-term trends rather than short-term market swings.

“I’m as bullish as ever on Bitcoin, and still long — as always,” Armstrong said.

The Coinbase CEO argued that Bitcoin’s boom-and-bust cycles often appear more dramatic than they are when viewed across longer time horizons.

“It’s never as good or as bad as it seems,” he said.

Armstrong said his long-term outlook remains unchanged despite the current correction.

“I think by 2030 we’re gonna have a much higher price,” he added.

Armstrong has also previously endorsed the possibility of Bitcoin reaching $1 million before the end of the decade.

Longtime Critic Schiff Softens Zero-Dollar Prediction

Even one of Bitcoin’s most vocal critics slightly moderated his stance.

Economist and gold advocate Peter Schiff recently acknowledged that Bitcoin may not ultimately fall to zero, despite repeatedly arguing in recent months that the crypto was on its way to complete death.

During a debate with investor Anthony Pompliano on Fox Business, Schiff maintained that Bitcoin’s long-term value proposition remains weak but conceded that the market could continue attracting buyers.

However, his criticism remained firm.

“Bitcoin is really no higher than it was five years ago,” Schiff said.

“It’s just been going sideways as all the money has been pouring in. The early money has been getting out.”

Mike Alfred Sees Major Bitcoin Price Rally Ahead

Not everyone expects the current weakness to persist.

Crypto investor Mike Alfred said he believes improving macroeconomic conditions could set the stage for a powerful rally over the coming months, potentially driving Bitcoin to new all-time highs.

Speaking on the Bitcoin Historian podcast, Alfred predicted that Bitcoin could climb into a range of $150,000 to $250,000 during its next major advance.

“I think the next move in Bitcoin finally takes us to 150, 200, 250 whatever, and at that point people will actually start to get bullish,” Alfred said.

Alfred argued that financial markets have spent years constrained by elevated interest rates and policy uncertainty, creating a compressed environment for risk assets.

As those pressures begin to ease, he believes Bitcoin could benefit alongside AI-related stocks and other growth-oriented investments.

The investor also reiterated his longer-term view that Bitcoin will eventually reach $1 million.

“I don’t think anything could stop it,” Alfred said.

“I don’t think it really matters specifically when. I think that the key thing is that it’s almost certainly going to happen.”

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