Bitcoin (BTC) fell to the $86,000 level. Growing concerns about a slowdown in U.S. interest rate cuts have led to selling pressure across risk assets.
According to CoinMarketCap, a global virtual asset market monitoring site, at 8:00 AM on the 16th, BTC was trading at $86,155.69, down 2.43% from the previous day. Ethereum (ETH) is trading at $2,944.48, down 3.98%. BNB fell 2.86% to $852.73, XRP fell 5.09% to $1.887, and Solana (SOL) fell 3.04% to $126.14.
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The domestic market is also weak. At the same time, BTC (based on Bithumb) was trading at 128,792,000 won, down 1.93% from the previous day. ETH fell 2.99% to 4,408,000 won, XRP fell 2.55% to 2,823 won, and SOL fell 3.03% to 188,700 won.
On this day (local time), the decline in cryptocurrency-related stocks was greater than the spot price. Circle fell 9.60%, Galaxy Digital fell 8.26%, and Strategy fell 8.14%. Coinbase also fell by over 6%.
According to CoinDesk, a cryptocurrency news outlet, trading firm Wintermute has diagnosed a sense of fatigue across stocks and digital assets. Rather than risk assets entering a full-blown risk aversion phase, the analysis suggests they are simply digesting macroeconomic uncertainty. Jasper DeMaer, a Wintermute desk strategist, stated, "As long as there are no signs of forced liquidations or persistent liquidity deterioration, we are likely to see a relatively orderly correction rather than a chaotic collapse."
A factor contributing to the market volatility is the Federal Reserve's (Fed) shift in monetary policy. While the Fed cut its benchmark interest rate by 0.25 percentage points this month, it remained cautious, projecting only one rate cut next year. This suggests a discrepancy with the market's expectations of three rate cuts per year.
With the possibility of a Bank of Japan (BOJ) interest rate hike gaining traction, concerns surrounding global liquidity and the yen carry trade are growing. The yen carry trade involves borrowing yen to leverage Japan's low interest rates and investing in stocks, cryptocurrencies, and other assets. A rise in Japanese interest rates would increase funding costs and increase the risk of exchange rate losses, potentially leading to a loss of investment. This could lead to increased volatility in risky assets across global markets.
Cryptocurrency investor sentiment remains at a state of "extreme fear." The fear and greed index from cryptocurrency data analysis firm Alternative.me fell 5 points from the previous day to 16. A reading closer to 0 indicates a weakened investor sentiment, while a reading closer to 100 indicates overheated markets.
- Reporter Do Ye-ri
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