Overview
- The Federal Open Market Committee kept the federal funds rate at 3.50%–3.75% on June 17 and signaled more hikes could be needed after May consumer prices rose 4.2%.
- The US Dollar Index first spiked above 100 on June 18 and then closed near 101.17–101.41 during the June 23–24 sessions, pushing above the 100‑week moving average that traders had watched for months.
- That dollar move has pushed money toward safer, dollar‑denominated assets and put immediate downward pressure on risk markets such as stocks and crypto.
- Bitcoin fell into the low $62,000s after the Fed news and spot Bitcoin and Ether ETFs recorded combined outflows exceeding $111 million in the immediate aftermath.
- Speculative net long dollar bets have climbed to about $28 billion and a sustained run toward technical targets of 102–103 would likely accelerate selling, raise FX borrowing costs for non‑US borrowers, and tighten global liquidity.