Bitcoin Continues to Rebound on Expectations of September Rate Cut

US CPI down 0.4% month-on-month… Meets market expectations
Market: "US Fed to cut interest rates by 25bp in September"
Altcoins strengthen intraday upward trend following BTC rise

Bitcoin (BTC) rebounded after the U.S. Consumer Price Index (CPI) for August was released.

The U.S. Department of Labor announced that the U.S. CPI for August rose 2.5% year-on-year and fell about 0.4% from the previous month, meeting market expectations. As the CPI, which is the main data used by the U.S. Federal Reserve (Fed) in determining interest rates, met market expectations, investors’ expectations for a rate cut rose.

The cryptocurrency market has maintained a strong consolidation since the morning. In particular, as Bitcoin broke its downward trend and rebounded, most altcoins rebounded, and some even recorded gains of over 10%.

The cryptocurrency market, which started rising in the morning, is showing signs of rising in the afternoon.

◇Bitcoin = As of 5 PM on the 12th, the Bitcoin price on Upbit was 78.42 million won. Bitcoin’s market share (dominance) was 57.49%.

As Bitcoin's mining difficulty has skyrocketed and its price has recently fallen short of expectations, there are predictions that miners may put up for sale their abandoned assets.

Bloomberg News reported on the 12th, citing data from cryptocurrency mining information company CoinWars, that Bitcoin mining difficulty rose 3.5% compared to the previous week. With the implementation of the halving in April, the amount of Bitcoin that can be produced with the same amount of resources has been reduced by half.

Christopher Bendiksen of cryptocurrency asset management firm CoinShares pointed out that the business outlook for many miners is darkening as mining difficulty rises to an all-time high.

"There will be places where it will be difficult to generate positive cash flow, let alone profit," he said. "Many miners are expecting a surge in the price of bitcoin, and if that doesn't happen, some will struggle."

◇Rising Coin = As of 5 PM on the 12th, based on Upbit, the cryptocurrency that recorded the largest increase compared to the previous trading day was UXLINK, which has been recording a 'star-struck' increase for the past several days, rising by approximately 26%.

UXLink builds a user-participatory Web 3.0 social platform, guaranteeing users complete ownership and privacy of their data, identity, and social connections. It aims to overcome the limitations of existing social platforms by serving as a bridge between Web 2.0 and Web 3.0.

For users, it provides various dApps and services that can be operated on a group basis, and for developers, it supports various APIs (Application Programming Interfaces) and SDKs (Software Development Kits) that can utilize users' social data. Users can easily create a UXLink account and invite friends using existing social media accounts such as Telegram. UXLink's native token, UXLink, is used as a means of payment and governance within the platform.

◇Fear and Greed Index = The cryptocurrency fear-greed index provided by Alternative has entered the 'Fear' stage at 31 points. The fear stage (25-49) is a stage where price volatility and trading volume increase and the price falls. There is a high possibility of forming a short-term low, so you should be careful when buying.

Reporter Kwon Seung-won ksw@