 ▲ Bitcoin (BTC) |
Cryptocurrency leader Bitcoin fell to the $65,000 range on the 14th (local time) due to the U.S. interest rate cut this year and political uncertainty in Europe.
According to Coinbase, a U.S. virtual currency exchange, as of 3 p.m. Eastern time on this day, the price of one Bitcoin was traded at $65,455, down 2.01% from 24 hours ago.
Bitcoin, which had been trading at the $67,000 level the previous day, fell to $60,005 at one point on this day, threatening the $60,000 level.
At the same time, Ethereum, the second largest market cap, also fell 2.50% to $3,382.
Until the morning of the 12th, Bitcoin was trading at around $70,000 due to news of a slowdown in the growth rate of the U.S. Consumer Price Index (CPI) in May.
This is because expectations for a base interest rate cut by the U.S. Federal Reserve (Fed) have increased as the CPI growth rate appears to have slowed.
However, contrary to expectations, the price of Bitcoin turned downward as the Federal Reserve froze interest rates at the Federal Open Market Committee (FOMC) on the 12th. In particular, the decline increased as the Federal Reserve indicated that it would cut the U.S. benchmark interest rate only once by the end of this year, down from the original three.
In addition, the growing political uncertainty in France due to the possibility that the far-right National Rally (RN) would take power also encouraged a decline in prices.
According to coin data analysis company Coinglass, over the past 24 hours, $180 million worth of leveraged derivatives across all virtual currency assets were forced to be sold.
These products had been betting on price increases for a long time, but as the price of Bitcoin fell, they were forced to sell to repay the virtual currency borrowed from the exchange.
This week alone, more than $870 million was forced into liquidation.
CoinDesk, a media outlet specializing in cryptocurrency, said, “On the 12th, the Federal Reserve predicted only one interest rate cut this year that would be lower than the previous forecast, dashing investors’ hopes for an easing monetary policy this summer,” adding, “Political uncertainty in Europe is also a factor.” “The U.S. dollar index (DXY) against major currencies rose to its highest level in over a month, putting pressure on Bitcoin,” he analyzed.
