 ▲ Bitcoin (BTC) © Coin Leaders |
Cryptocurrency leader Bitcoin (BTC) lost about 5% in price this week due to the U.S. Federal Reserve's hawkish (preferring monetary tightening) stance.
As of 8:29 a.m. on the 16th (Korean time), the price of BTC, the No. 1 cryptocurrency by market cap based on CoinMarketCap, is trading at $66,214, down 4.45% from a week ago.
According to CoinGape, the price of Bitcoin continued its bearish rally last week, falling 5% from a weekly high of $70,059 to a weekly low of $65,267.
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 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.
In particular, some analyzes say that cryptocurrency investors have taken a cautious stance due to uncertainty about the launch of the Ethereum (ETH) spot ETF, contributing to bearish pressure.
Michaël van de Poppe, a cryptocurrency analyst with about 720,000 followers of
Poppe explained that this correction could form a 'high low', meaning that the overall bullish trend is still in effect.
CryptoQuant CEO Joo Ki-young Ki also said through “It means,” he said, adding strength to optimism.
On the other hand, 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. “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, Wall Street investment bank Bernstein predicted in a recent report, "Bitcoin could reach a maximum of $1 million by 2033. It is likely to rise to $200,000 in the 2025 cycle."
