Bitcoin briefly touched $65,000 on June 23 before retreating to $64,230.64, up 0.52% in 24 hours, while Ethereum stabilized at $1,732.47 (+0.43%). Despite the slight gains, the market remains in extreme fear, with the Fear & Greed Index at 23 and $367.95 million in total liquidations over the past day, predominantly long positions. The rebound is seen as a pause in a downtrend rather than a reversal, as bullish momentum remains weak.
$368 Million in Liquidations Crush Longs
According to CoinGlass data, the crypto derivatives market saw $367.95 million in liquidations over 24 hours, with longs bearing the brunt. In the last 12 hours, $214.84 million was liquidated ($162.71 million longs, $52.13 million shorts); over the past 4 hours, $71.35 million was wiped out ($66.05 million longs), and in the last hour, $22.90 million was liquidated ($21.36 million longs). The single largest liquidation order reached $11.09 million, highlighting sustained pressure on leveraged long positions.
Fed Hawkishness and ETF Outflows Weigh on Sentiment
Two key factors are suppressing the market. First, the Federal Reserve's hawkish stance under new Chair Kevin Warsh: at the June 17 FOMC meeting, the Fed held rates at 3.50%-3.75% but raised year-end PCE inflation expectations to 3.6% (from 2.7%), with nine officials projecting at least one rate hike this year and six expecting two or more. May CPI came in at 4.2% year-over-year, with core CPI at 2.9%, dashing hopes for rate cuts. Second, institutional capital is retreating: U.S. spot Bitcoin ETFs saw net outflows of approximately $4.4 billion over 13 consecutive trading days from May 15 to June 3, with a single-week outflow of $3.4 billion in early June — the largest since the ETFs launched in January 2024. Although cumulative net inflows remain around $58.7 billion, short-term momentum has reversed.
Altcoins Diverge: SOL and XRP Still in the Red
Not all cryptocurrencies followed Bitcoin's modest uptick. Solana (SOL) was trading at $71.90, down 1.96% in 24 hours, and remains nearly 5% below its June 16 peak of $75.60, indicating lingering profit-taking pressure. XRP stood at $1.1322, down 0.44% on the day, and has fallen over 12% from its June 16 high of $1.29. This divergence from BTC and ETH's slight gains suggests capital is contracting rather than rotating into altcoins.
Fear Index Stays at Extreme Levels; Outlook Uncertain
The Crypto Fear & Greed Index held at 23 on June 23, barely recovering from 20 the previous day, remaining deep in 'extreme fear' territory. U.S. equities showed mixed performance on June 22: the Dow Jones rose 0.44%, the S&P 500 edged up 0.12%, but the Nasdaq fell 0.27%, while the Russell 2000 gained 2.12% to close above 3,000 points for the first time, hinting at rotation into small caps. The crypto market's near-term direction hinges on inflation data and Fed commentary. Until a clear directional signal emerges, the combination of extreme fear and heavy long liquidations is likely to cap any rebound.