[Bitcoin Now] Fed Signals Additional Rate Hike... 30 Million Won 'At Risk'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices have plummeted, falling to the mid-$23,000 range. In Korean won, this corresponds to the low 30 million won range. This appears to be influenced by the possibility of additional interest rate hikes suggested in the Federal Open Market Committee (FOMC) meeting minutes released by the U.S. Federal Reserve (Fed).

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11 a.m. on the 18th, Bitcoin was priced at $23,459 (approximately 30.85 million won), down 2.22% from the previous day.

Bitcoin prices seem to be affected by the FOMC minutes released on the 17th (local time). Meeting participants expressed the view that "inflation continues to exceed the target (2%) by a wide margin, making it essential to adopt a restrictive policy stance to fulfill the committee's mandate of maximum employment and price stability." The content of the minutes was interpreted as signaling additional rate hikes, which reduced risk asset appetite and led to a decline in Bitcoin prices.

However, there are also analyses suggesting a long-term perspective on Bitcoin prices. Joe Orsini, director at Eaglebrook Advisors, said, "Considering that Bitcoin prices have risen about 30% compared to the low on June 18, it seems market participants are engaging in some profit-taking," adding "Since macro conditions appear to be improving, there is no need to react too sensitively to short-term price movements."

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped 11 points from the previous day to 30 points (fear) on the same day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear or pessimism about investing, to 100, indicating extreme optimism.