Bitcoin drops to $63,077 as Warsh Fed triggers $558M liquidation cascade

Bitcoin slid to $63,077 on June 18 as a hawkish Federal Reserve debut from Chair Kevin Warsh triggered $558 million in crypto liquidations.

Bitcoin fell 3% to $63,900 before extending losses to $63,077 after the Fed held rates at 3.50% to 3.75% but signaled a higher-for-longer policy path.

"The Fed's updated projections point to higher inflation and a slower pace of future cuts, with some officials floating the possibility that rates may still need to rise," Gerry O'Shea, head of global market insights at Hashdex, said. "We expect bitcoin to continue to trade in the $60,000 to $70,000 range in the coming weeks absent a major catalyst."

The selloff swept across the market. Ether fell 3.4% to $1,712, XRP dropped 3.9% to $1.14 and Solana lost 3.6% to $69.75, CoinGecko data shows. Coinglass data shows 136,366 traders were liquidated in the past 24 hours for $558.38 million, with long positions bearing the brunt. Bitcoin's realized cap growth has remained in a bear-phase regime since Oct. 30, 2025, CryptoQuant data shows, with the seven-day moving average declining to 13.9 from roughly 70 in Q4 2025.

The $62,000 level now represents the key battleground. A sustained break below that threshold could open a path toward $60,000, while a reclaim of $65,000 would shift focus back to $70,000. The June 26 Bitcoin options expiry carries roughly $10.5 billion in open interest, with max pain near $74,000 — far above spot prices — leaving bullish positions under pressure.

The divergence between crypto and equities was notable. While Bitcoin sold off, S&P 500 futures rose as much as 0.9% and Nasdaq futures gained 1.5% after President Donald Trump signed an interim peace deal with Iran that reopened the Strait of Hormuz and sent Brent crude toward $78 a barrel. Crypto failed to catch that bid, a sign that monetary policy — not geopolitics — is driving near-term price action.

Bitcoin's valuation relative to AI-linked equities has moved into historically attractive territory, according to Bitwise, with the Mayer multiple showing Bitcoin trading below its long-term trend while Nvidia trades at a significant premium. Yet elevated interest rates continue to limit capital availability for speculative assets, the firm said.

On-chain data offers a mixed picture. Large Bitcoin holders — wallets holding at least 1,000 BTC — have increased accumulation to their highest levels since March, and exchange reserves have declined, pointing to continued long-term holding behavior. But the Coinbase Premium Index remains negative, suggesting weaker buying activity from U.S.-based participants, and spot Bitcoin ETFs have recorded outflows in recent sessions.

$420M in Longs Liquidated as Leverage Washed Out

The liquidation cascade was concentrated in long positions, with $420 million in long contracts unwound across Binance and OKX in the 24 hours through 14:00 UTC, Coinglass data shows. One trader opened a $38.5 million Bitcoin short position using 30x leverage shortly after the FOMC meeting, according to market commentator Crypto Rover, sitting on roughly $750,000 in unrealized profit as Bitcoin moved lower.

Bitcoin researcher Axel Adler Jr. pointed to the Fed's updated dot plot as the trigger: nine officials expect at least one rate hike this year, with six projecting two or more. The selling volume expanded during the decline on Wednesday, marking the heaviest trading activity at the point of rejection at $66,200.

This article is for informational purposes only and does not constitute investment advice.