 ▲ Bitcoin (BTC) ©Coin Leaders |
Cryptocurrency leader Bitcoin (BTC) 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.
As of 8:35 a.m. on the 15th (Korean time), the price of BTC, the No. 1 cryptocurrency by market cap based on CoinMarketCap, is trading at $66,007, down 1.30% from 24 hours ago.
Bitcoin fell to a low of $65,049.23 on this day. Bitcoin fell 4.74% in a week.
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 of the far-right National Rally (RN) taking 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. In addition, political uncertainty in Europe is also increasing." “The U.S. dollar index (DXY) against major currencies rose to its highest level in over a month, putting pressure on Bitcoin,” he analyzed.
According to Crypto Briefing, another cryptocurrency media outlet, Rekt Capital, an anonymous cryptocurrency trader with about 470,000 followers of X (formerly Twitter), said through , it is a typical phenomenon that Bitcoin is struggling to break the new high after the halving. “Bitcoin is currently in the re-accumulation phase, and based on past patterns, the sideways trend could extend for another three months,” he predicted.
Meanwhile, CryptoQuant CEO Joo Ki-young Ki said through “It means you can,” he said.
He added, “Maintain a long-term bull market, but avoid excessive risks.”
