[Bitcoin Now] Rise Following Interest Rate Freeze... Binance and SEC Agreement Also a Positive Factor

Bitcoin prices are on the rise following the U.S. Federal Reserve's decision to hold interest rates steady and news that the global cryptocurrency exchange Binance has reached an agreement with the U.S. Securities and Exchange Commission (SEC).

Image source=Reuters·Yonhap News

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:28 a.m. on the 18th, Bitcoin was priced at $26,447 (approximately 33.85 million KRW), up 0.51% from the previous day. Compared to a week ago, it has risen 2.52%. Until the 14th of this month, Bitcoin was trading in the $24,800 range but has since shown an upward trend.

The U.S. Federal Reserve (Fed) held the benchmark interest rate steady at 5.0-5.25% during this month's Federal Open Market Committee (FOMC) meeting. However, through the dot plot, it raised the year-end rate forecast from the previous median of 5.1% to as high as 5.6%. This signals the possibility of two additional rate hikes in the remaining four meetings this year. Despite this, expectations that the rate hikes are nearing their end have contributed to the rise in cryptocurrency prices.

Additionally, the news that Binance and the SEC have agreed to protect U.S. customers' funds and allow withdrawals in the United States was also seen as a positive factor. The day before, the SEC announced that, following an order from the U.S. District Court for the District of Columbia, Binance agreed to repatriate relevant assets to the U.S. for the benefit of its U.S. exchange customers. The court also ordered that during the ongoing litigation filed by the SEC, Binance must maintain customer assets in the U.S. and allow customer withdrawals. Binance was prohibited from using corporate assets for purposes other than ordinary business operating expenses.

Previously, the SEC filed a lawsuit in the U.S. District Court for the District of Columbia against Binance and CEO Zhao Changpeng, alleging investor fraud, improper commingling of various funds, and operating as an unregistered broker. The SEC also requested an emergency order to freeze Binance’s U.S. assets and repatriate customers’ fiat and cryptocurrency assets to the U.S. However, this recent decision has relieved Binance from the threat of asset freezing.

Investor sentiment in the cryptocurrency market remained neutral. According to the cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 2 points from the previous day to 49 points (neutral) on this day. Compared to 47 points (neutral) a week ago, it increased by 2 points. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating extreme optimism.