Even though the Federal Reserve (Fed), the central bank of the United States, cut its benchmark interest rate by 0.25 percentage points, Bitcoin (BTC) is moving sideways around the $92,000 level.
According to CoinMarketCap, a global cryptocurrency market monitoring site, at 8:00 AM on the 11th, BTC was trading at $92,538.38, down 0.34% from the previous day. Ethereum (ETH) was trading at $3,347.95, up 0.35%. XRP was down 2.90% at $2.055. BNB was down 0.72% at $898.78, and Solana (SOL) was down 1.42% at $137.00.
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The domestic market is mixed. At the same time, BTC was trading at 137,493,000 won on Bithumb, up 0.69% from the previous day. ETH was up 0.77% at 4,676,000 won, XRP was down 0.46% at 3,056 won, and SOL was up 0.39% at 204,800 won.
The Federal Reserve announced on the 10th (local time) that it had decided to lower its benchmark interest rate from 3.75-4.00% to 3.50-3.75% following its regular Federal Open Market Committee (FOMC) meeting. This is the third rate cut this year and the third consecutive one. Immediately following the meeting, Fed Chairman Jerome Powell remarked, "The labor market may be weaker than expected," sending Bitcoin (BTC) soaring to the $94,000 range. However, he then added, "The fight against high inflation is not over yet," causing BTC to give up most of its gains. Analysts suggest this was interpreted as a signal that monetary policy had not been significantly eased despite the rate cut.
The industry believes that BTC needs additional momentum to break out of the upper range. David Hernandez, a cryptocurrency investment expert at 21Shares, analyzed, "New momentum is needed to overwhelm short positions that are stuck in the resistance zone around $94,500." He explained, "In an environment where the cost of capital is decreasing, increased inflows into Bitcoin spot exchange-traded funds (ETFs) could serve as a catalyst for BTC to recover the $100,000 mark." The fear and greed index from virtual asset data analysis company Alternative.me rose 4 points from the previous day to 26, indicating a "fear" level. A reading closer to 0 indicates a weakening of investor sentiment, while a reading closer to 100 indicates an overheated market.
- Reporter Do Ye-ri
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