Bitcoin price 'downhill' due to sudden US interest rate cut

Due to the lack of inflation... Number of interest rate cuts reduced to one
Bitcoin, soaring on expectations of interest rate cuts, gives back its gains
Major altcoins are also falling... ‘Mem Coin’ rises alone
Foreign press: “Bitcoin could fall to $65,000”

The price of Bitcoin (BTC), which rose last night amid expectations of a base interest rate cut by the U.S. Federal Reserve (Fed), reversed downward. This is because investment sentiment cooled as the Federal Reserve announced that, contrary to expectations, it would slow down the rate of interest rate cuts.

The Federal Reserve's Federal Open Market Committee (FOMC) announced at its regular meeting on the 13th (local time) that it would freeze the benchmark interest rate at 5.25-5.5% and limit the number of interest rate cuts within the year to one.

The still high inflation rate in the United States was cited as the reason for the Federal Reserve's hesitation in lowering the benchmark interest rate. Fed Chairman Jerome Powell said at a press conference, "Inflation has eased considerably, but it is still too high," adding, "As progress has been slower than expected in lowering the inflation rate to the Fed's target of 2%, expectations of an interest rate cut have been pushed aside."

Bitcoin surpassed the $69,000 level on the night of the 12th thanks to expectations of the Federal Reserve's announcement of a surprise interest rate cut, but due to the Federal Reserve's hawkish actions, it gave back all of its gains and continued its downward trend throughout the day on the 13th.

When Bitcoin fell, most major altcoins also fell. Only 'meme coins' such as Dogecoin (DGOE) and Pepecoin (PEPE) rose and attracted the attention of investors.

◇Bitcoin = As of 5 p.m. on the 13th, the price of Bitcoin (BTC) is 95.35 million won as of Upbit. Bitcoin market share (dominance) was 55.63%.

As Bitcoin fell sharply after the Federal Reserve's announcement of freezing the base interest rate and changing the dot plot, foreign media predicted the possibility of a further decline in Bitcoin, citing fluctuations in the Bitcoin price as evidence.

NewsBTC, a media outlet specializing in cryptocurrency, emphasized that Bitcoin's decline has accelerated since it fell below the 100-hour moving average (MA) of $68,800, and that the downward curve on the chart may become steeper for the time being.

NewsBTC said, “Bitcoin is trading below the 100-hour moving average, and after the first support level of $68,550 is broken, the next support level is $67,148.” “If this support line is broken, Bitcoin will hit $65,500 in the short term.” “There is a high possibility that it will fall to .”

◇Rising Coin = As of 5 PM on the 13th, the digital asset that recorded the largest increase compared to the previous trading day on Upbit was ELF, which showed an increase of about 10%.

ELF Coin is one of the 3rd generation blockchain platform coins developed to solve the blockchain problems of Bitcoin and Ethereum, which aim for blockchain-based Linux operating systems.

ElfCoin supports smart contracts with cloud computing and is used for smart control, system operation, and upgrade resource costs.

◇Fear and Greed Index = The cryptocurrency fear-greed index provided by Alternative has entered the ‘Greed’ stage with 70 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@