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Bitcoin's price has been pinned below $26,300 since June 10, reflecting a 14.8% correction in two months. Meanwhile, the Nasdaq tech stock market index gained 13.6% in the same period, indicating that investors are not exactly fleeing to the safety of cash and short-term debt. In fact, the demand for United States government bonds has been declining for the past six weeks.

The yield on two-year U.S. Treasurys, for example, increased from 3.80% on May 4 to 4.68% on June 14. Lower demand for debt instruments increases payouts, resulting in a higher yield. If the investor thinks that inflation will continue above target, the tendency is for those participants to demand a higher yield when trading bonds.

The U.S. Treasury is set to issue more than $850 billion in new bills between June and September. As additional debt issuance tends to cause higher yields, the market expects increased borrowing costs for families and businesses. Still, that does not explain why investors have been flocking to tech companies but avoiding Bitcoin (BTC), as depicted by the past two-month performance.

Eight consecutive weeks of crypto fund outflows

According to CoinShares' latest “Digital Asset Fund Flows Report,” the sector’s investment product outflows amounted to $88 million in the week ending on June 10. The substantial drawdown added to the ongoing eight-week streak of outflows, which now total $417 million.

The eight-week cumulative outflows for Bitcoin reached $254 million, representing approximately 1.2% of the total assets under management. Analysts at CoinShares have attributed this trend to monetary policy considerations, as interest rate hikes show no signs of slowing down, prompting investors to remain cautious.

The crypto market remains volatile after the June 14 Federal Open Market Committee (FOMC) announcement and presser with Federal Reserve Chairman Jerome Powell revealed that the central bank would pause rate hikes for June.

While this move aligned with investors’ expectations, the crypto market has yet to show any bullish momentum. Powell also mentioned that at least two more rate hikes would be needed in the future. 

The Bitcoin (BTC) price started the day up, trading above $26,000, but it has since retraced to a 24-hour low of $25,791 after the FOMC announcement. Some analysts are predicting that a drop to $25,000 is inevitable based on the current state of BTC derivatives data.

The muted crypto price action and lack of a bullish response to today’s rate hike pause could be the lingering effect of the charges by the Securities and Exchange Commission (SEC) against Binance and Coinbase.

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The price of BNB (BNB) is up around 3% today, in part due to bearish traders opening more BNB-tied contracts despite suffering losses via liquidations in the past 24 hours. In addition, BNB stands extremely "oversold," which may have prompted traders to buy the dip.

BNB price bounces after being "oversold" 

On June 14, BNB price climbed nearly 4% to $253. The gains came as a part of a recovery that saw its price rebounding 12% two days after falling to a six-month low of $220.

From a technical perspective, BNB's rise on June 14 came on the heels of its "oversold" status. Notably, the daily relative strength index (RSI) dropped to around 16.6 two days ago, its lowest reading since March 2020.

An RSI reading below 30 typically precedes a consolidation or recovery period in the market.

For instance, the BNB's daily RSI stint below 30 in December 2022 preceded a 50% price rally in the next two months.

The price of BNB was up over 3% on June 14, in part due to bearish traders opening more BNB-tied contracts despite suffering losses via liquidations in the previous 24 hours. In addition, BNB (BNB) stands extremely “oversold," which may have prompted traders to buy the dip.

BNB price bounces after being “oversold” 

On June 14, the BNB price climbed nearly 4% to $253. The gains came as part of a recovery that saw the price rebounding 12% two days after falling to a six-month low of $220.

From a technical perspective, BNB’s rise on June 14 came on the heels of its “oversold" status. Notably, the daily relative strength index (RSI) dropped to around 16.6 two days earlier, its lowest reading since March 2020.

An RSI reading below 30 typically precedes a consolidation or recovery period in the market.

For instance, the BNB daily RSI stint below 30 in December 2022 preceded a 50% price rally in the next two months.