Bitcoin soars on US Fed's 'big cut'... Surpasses $63,000

BTC, the 'best in the world' performance amid rising global asset markets
Altcoins Break Long Silence, Create Bullish Atmosphere
Experts: BTC bull market resumes due to US rate cut

Bitcoin (BTC), which began to rise after the U.S. Federal Reserve (Fed) cut its benchmark interest rate by 50bp, has surpassed $63,000.

The Federal Reserve announced on the 18th (local time) that it would cut interest rates by about 100bp this year, along with a big cut, after the Federal Open Market Committee (FOMC) meeting. Following the Fed’s announcement of the interest rate cut, the U.S. stock market, global stock markets, and gold prices rose, and among them, Bitcoin showed a surge in growth.

Altcoins, which had been stagnant for a while due to Bitcoin's rise, rose strongly. Major altcoins rose by about 3%, and altcoins that recorded a rise of more than 10% emerged here and there.

◇Bitcoin = As of 5 PM on the 20th, the Bitcoin price on Upbit was 84.74 million won. Bitcoin dominance stood at 58.00%.

As Bitcoin continued its upward trajectory following the Federal Reserve's announcement of a rate cut, predictions abounded regarding the resumption of Bitcoin's bull market.

Matthew Siegel, VanEck's cryptocurrency chief, pointed out in a report published on the 19th that the Fed's interest rate cuts have led to a decline in the value of traditional currencies and a supply of liquidity in the cryptocurrency market.

“Bitcoin has always had an inverse relationship with the value of the dollar,” said Siegel. “As the Fed continues to cut interest rates, the value of the dollar will decline in the fourth quarter of this year, and Bitcoin will perform well.”

On-chain analytics platform Glassnode claims that Bitcoin is headed for a rally based on the amount of stablecoins flowing into the market.

Glassnode reported in a report published on the 20th that stablecoins deposited in centralized exchanges (CEXs) reached approximately $160.4 billion (approximately KRW 213.4764 trillion), approaching an all-time high.

“The increase in stablecoin supply foreshadows a future buying spree for cryptocurrencies,” Glassnode wrote, adding that “there is tension between the current lukewarm market and potential future demand.” It went on to emphasize that “the influx of stablecoins foreshadows high market volatility.”

◇Rising Coin = As of 5 PM on the 20th, based on Upbit, the cryptocurrency that recorded the largest increase compared to the previous trading day was Ark (ARK), recording a rise of approximately 31%.

Arc is a Java-based platform that is developing a core technology called 'Smart Bridge'. Smart Bridge is a technology that allows you to send your Arc to someone who wants Bitcoin and have it converted into Bitcoin while it is being transferred.

Ark is used as a native token on the platform for fees, etc.

◇Fear and Greed Index = The cryptocurrency fear and greed index provided by Alternative has entered the 'Neutral' stage at 54 points. The neutral stage is a section where psychological resistance and support from market participants appear, and important decision-making actions occur in future price movements.

Reporter Kwon Seung-won ksw@