Bitcoin down 3%, Ethereum down 5%… Declining expectations of a US interest rate cut pushes prices lower across the board [Decenter Market Report]

As expectations for a rate cut by the U.S. Federal Reserve (Fed) in September diminish, cryptocurrency prices are showing a simultaneous decline.

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 8 a.m. on the 20th, BTC was traded at $113,145.57, down 2.89% from 24 hours earlier. At the same time, Ethereum (ETH) was traded at $4,130.86, a 4.76% drop. XRP fell 5.95% to $2.894, and Solana (SOL) dropped 2.83% to $179.22.



The domestic market is also weak. At Bithumb, a domestic exchange, BTC recorded 157,949,000 won, down 2.48% from the previous day. ETH was traded at 5,762,000 won, down 4.62%, and XRP fell 5.46% to 4,036 won.

This decline is due to the U.S. July Producer Price Index, which significantly exceeded expert expectations, dampening expectations for a Fed rate cut in September. Additionally, with Jerome Powell's economic policy symposium speech at Jackson Hole approaching on the 22nd, investment sentiment for risky assets has contracted. Some speculate that Powell may signal a rate hold at the event.

Bank of America's report states, "Considering the essentially entrenched inflation over the past year, the ongoing effects of tariff increases, and maintaining historically low unemployment rates, we believe the Fed has strong grounds to maintain interest rates."

The Fear and Greed Index from cryptocurrency data analysis firm Alternative.me dropped 4 points from the previous day to 56 points, indicating a state of "greed". This index means that the closer to 0, the more contracted the investment sentiment, and the closer to 100, the more overheated the market.

Reporter Kim Jung-woo