Bitcoin drops below $63,000, market pressured by consecutive ETF outflows and $10.6 billion in options expiring

Odaily News Bitcoin edged closer to $62,000 on Tuesday, continuing its weak and volatile trend amid a sixth consecutive week of spot ETF outflows, hawkish shifts in macro interest rate expectations, and the pressure of quarter-end options expiration. Ethereum fell below $1,700 on the same day, with both BTC and ETH retreating nearly 20% over the past 30 days.

Market pressure this week comes primarily from two fronts. First, the Federal Reserve maintained interest rates at 3.50% to 3.75% during the June 18 FOMC meeting, but the statement notably reduced dovish language, and the dot plot shifted from previously indicating rate cuts to suggesting rate hikes. Of the 18 officials, 9 now expect at least one rate hike this year, and the probability of a December hike has risen significantly compared to a month ago.

Second, geopolitical risks have once again disrupted the market. Previously, expectations of a US-Iran ceasefire pushed Bitcoin above $67,000, but the situation deteriorated during the signing ceremony on June 19, with Iran withdrawing from negotiations. Due to the 24/7 nature of the crypto market, Bitcoin was the first to reflect this shock.

Additionally, Deribit is set to see approximately $10.6 billion in options expire on June 26, further fueling a cautious, wait-and-see sentiment in the market at the end of the quarter. Analysts believe that leverage has been significantly cleared, and market positions are leaning towards a defensive stance. However, the next directional move still depends on Thursday's PCE inflation data and whether spot ETF inflows can turn positive again.