Bitcoin price falls due to concerns about delay in US interest rate cut

A sense of caution is forming both inside and outside the market ahead of the FOMC meeting.
In the afternoon, low-price buying flowed in… Digital assets are weak
Market: “There will be no change in prices until the interest rate announcement.”
Glassnode “BTC futures market data predicts decline”

The digital asset (cryptocurrency) market, including Bitcoin (BTC), recorded a weak trend amid concerns inside and outside the market that the U.S. Federal Reserve's (Fed) Federal Open Market Committee (FOMC) will slow down the pace of interest rate cuts.

The Federal Reserve will decide whether to adjust the base interest rate around 3 a.m. on the 13th (Korean time). Most of the U.S. macroeconomic indicators released until recently did not meet market expectations. Because of this, concerns have grown among investors that the Federal Reserve will slow down the rate of interest rate cuts, and this is interpreted to have dampened investment sentiment in digital assets.

As Bitcoin fell in the morning, most altcoins also fell. However, as low-price buying began to flow in from the afternoon due to the decline in digital asset prices, the market continued to trend weakly.

Inside and outside the market, there are predictions that the digital asset market will continue to remain weak until the FOMC announces the base interest rate.

◇Bitcoin = As of 5 PM on the 12th, the price of Bitcoin (BTC) is 95.05 million won as of Upbit. Bitcoin market share (dominance) was 55.57%.

Inside and outside the market, it was predicted that the price of Bitcoin might fall. Glassnode, an on-chain analysis platform, predicted a possible decline in Bitcoin based on large-scale 'short' betting investments in the US Bitcoin futures market.

Glassnode reported in its report published on the 11th that U.S. hedge funds had taken short betting positions worth $6.3 billion (about KRW 8.69 trillion).

The report said, “Due to the ‘cash holding strategy’ of U.S. hedge funds, the strength of Bitcoin, which had been riding a positive trend for a while thanks to the strong performance of Bitcoin spot exchange-traded funds (ETFs) in the U.S., is being hindered.” “Although ETFs are recording good results, selling is pouring in through futures contracts in the futures market,” he wrote.

◇ Rising Coin = As of Upbit at 5pm on the 12th, the digital asset that recorded the largest increase compared to the previous trading day was Ontology Gas (ONG), which rose 8.33% on this day alone.

Analysis suggests that the rise in Ontology Gas is related to the news of the approval of two Bitcoin and Ethereum spot ETFs in Hong Kong. It is said that large capitals in China are expected to enter the cryptocurrency market through Hong Kong, and Ontology Gas, one of the representative Chinese coins, has risen accordingly.

Ontology Gas is a token for running smart contracts on the multi-chain public blockchain Ontology. Ontology is a Chinese blockchain project established to build a DeFi ecosystem such as medical records and games. Ontology (ONT) for staking and governance participation in the blockchain and Ontology Gas (ONG) for smart contract execution exist separately.

◇Fear and Greed Index = The cryptocurrency fear-greed index provided by Alternative has entered the ‘Greed’ stage at 72 points. The greed stage is the stage where price volatility and trading volume increase, and is the stage where prices rise. There is a high possibility of a short-term peak forming, so one must be cautious when selling.

Reporter Seungwon Kwon ksw@