[Bitcoin Now] Impact of US Giant Step... 6 Consecutive Days of Decline

[Asia Economy Reporter Ji Yeon-jin] Bitcoin prices are hovering around the 49 million KRW level.

On the cryptocurrency exchange Upbit, as of 9 AM on the 25th, Bitcoin is trading at 49,447,000 KRW, down 0.35% (173,000 KRW) compared to the previous day. Bitcoin, which has been on a downward trend since the 20th of this month, has continued its weakness after falling below 50 million KRW on the 21st. Ethereum recorded a 1.28% (47,000 KRW) decrease, trading at 3,630,000 KRW.

These cryptocurrencies are interpreted to have shown weakness due to the possibility of the U.S. Federal Reserve's (Fed) aggressive interest rate hikes, including a big step (a 50 basis point increase) as well as a giant step (an increase of 75 basis points or more).

Earlier, Fed Chair Jerome Powell officially confirmed the 'big step' by stating at an International Monetary Fund (IMF) panel discussion held in Washington on the 19th (local time) that "a 0.50 percentage point increase in the federal funds rate will be on the table at the May Federal Open Market Committee (FOMC) meeting."

Additionally, James Bullard, President of the Federal Reserve Bank of St. Louis, reiterated his call for a 3.5% interest rate hike within the year during a U.S. Foreign Relations Committee event on the 18th (local time), saying, "We should not rule out multiple big steps as well as giant steps."