[NEW] Bitcoin temporarily falls below $25,000 as interest rate hike suspension also comes as a negative factor

Bitcoin (BTC) temporarily fell below $25,000 (approximately 3.52 million yen) in the early hours of the 15th. This is the first time it has fallen below $25,000 since March 18th. At the time of writing, the battle at $25,000 continues, and the future is unclear.

At a meeting held on the 14th, the Federal Open Market Committee (FOMC) stopped the interest rate hikes that had been continuing since March last year.

On the other hand, the median forecast for the policy interest rate outlook at the end of 2023 was revised to 5.6%, suggesting the possibility of two additional interest rate hikes by the end of the year, causing turmoil in the market.

The New York Dow Jones Industrial Average closed at $33,979.33, down $232.79 (0.68%), raising concerns about the prolonged interest rate hike. Bitcoin also followed suit, dropping in price, and the cryptocurrency (virtual currency) market fell across the board.

At a press conference after the FOMC meeting, FRB Chairman Powell did not reveal when interest rates would resume, but explained that "almost all of the participants in the meeting believe that several rate hikes by the end of the year would be appropriate."

On the other hand, he expressed the view that the conditions for lowering inflation are coming together, taking into account the current economic trends, and expressed a negative attitude toward the possibility of a significant rate hike.

Recently, despite the rise in major US indexes, the cryptocurrency market has remained stagnant. The background to this is the tightening of restrictions on cryptocurrency-related businesses by the US Securities and Exchange Commission (SEC).

Major exchanges such as Binance and Coinbase have been sued one after another by the SEC, and several altcoins, including major brands, have been deemed securities, and the cryptocurrency industry is burdened by a series of uncertainties. As a result, investor sentiment has worsened, and it is true that there is a growing trend to withdraw from cryptocurrencies.

According to Coinshares' weekly report, cryptocurrency-related products were sold for $88 million in the past week, the eighth consecutive week in which sellers outsold. The total amount sold over the past eight weeks is said to be $417 million.

Industry trends and concerns over the prolonged nature of interest rate hikes are expected to further dampen investor activity for the time being.

Reference:Report
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