[Bitcoin Now] Decline Amid US 3 Consecutive Giant Steps... Retreat to Mid-$18,000 Range

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices have fallen to the mid-$18,000 range due to the U.S. Federal Reserve's (Fed) decision to implement a third consecutive giant step (a 0.75 percentage point increase in the benchmark interest rate at once).

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:40 a.m. on the 22nd, Bitcoin was priced at $18,466 (approximately 26 million KRW), down 2.79% from the previous day.

Bitcoin prices appear to be declining further following the Fed's decision to take a third consecutive giant step. On the 21st (local time), the Fed announced after the Federal Open Market Committee (FOMC) regular meeting that it would raise the benchmark interest rate by 0.75 percentage points. Accordingly, the current benchmark rate of 2.25?2.50% was raised to 3.00?3.25%. Fed Chair Jerome Powell’s remarks at the press conference about maintaining an aggressive rate hike stance to curb inflation also seem to have fueled risk-averse sentiment.

Major altcoins are also on a downward trend. At the same time, Ethereum was down 6.08% from the previous day to $1,250 (approximately 1.76 million KRW), and Solana was down 2.47% to $30.84 (approximately 43,430 KRW).

There are forecasts that the bearish trend in the cryptocurrency market will continue until indicators reflecting inflation improve. Joe DiPascal, CEO of BitBull Capital, predicted, "If the Fed maintains its hawkish stance, the cryptocurrency market is likely to test new lows."

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped by 1 point from 23 (extreme fear) the previous day to 22 (extreme fear) on the same day. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.