[Bitcoin Now] Weakness After 4 Consecutive 'Giant Steps'... $20,000 Level Maintained

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Despite the Federal Reserve (Fed) implementing a 'Giant Step' by raising the benchmark interest rate by 0.75 percentage points four consecutive times, the price of the leading cryptocurrency Bitcoin remains weak.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:20 AM on the 3rd, the price of Bitcoin was recorded at $20,213 (approximately 28.74 million KRW), down 1.43% from the previous day.

Bitcoin prices declined on the 2nd (local time) after the Fed announced at the Federal Open Market Committee (FOMC) regular meeting that the federal funds rate would be raised by 0.75 percentage points from the previous 3.0?3.25% to 3.75?4.0%. Additionally, Fed Chair Jerome Powell’s hawkish remarks, stating that "it is very premature to think or talk about pausing rate hikes" and that "the terminal rate could be higher than previously expected," also contributed to the price drop. The market had anticipated this Giant Step and there were expectations for a slowdown in tightening policies after December. However, Powell’s comments dampened these hopes.

The U.S. stock market, which shows a synchronized movement, closed lower due to these remarks. The tech-heavy Nasdaq index plunged 366.05 points (3.36%) to close at 15,524.80. The Dow Jones Industrial Average fell 505.44 points (1.55%) to 32,147.76, and the large-cap S&P 500 index dropped 96.41 points (2.50%) to finish at 3,759.69.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, remained at 30 points (fear) as it was the previous day. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.