[Bitcoin Now] US March Interest Rate Cut Retreat... Up 0.9% Compared to Last Week

Short-term Low on the 23rd of Last Month... Two-Week Rebound

The price of Bitcoin has recovered to the 57 million KRW range as it continued its rebound trend for two consecutive weeks through this week. However, the recent upward momentum was halted as expectations for a March interest rate cut by the U.S. Federal Reserve (Fed) faded.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 4:11 PM on the 4th, Bitcoin's price stood at 57.3 million KRW, down 0.63% from the previous day. Compared to the previous week, it rose 0.9%, and it increased by 83.27% compared to one year ago.

Bitcoin's price found a short-term bottom in the high 51 million KRW range on the 23rd of last month and then shifted to a rebound trend. On the 30th, it surpassed 57 million KRW, but due to profit-taking sales and the retreat of expectations for a U.S. interest rate cut, it retreated back to the 55 million KRW range on the 1st of this month. After recovering to the 57 million KRW range on the 2nd, it briefly surged to the high 57 million KRW range on the 3rd. However, it showed weakness for two consecutive days through the 4th, falling back to the low 57 million KRW range.

The temporary sharp drop in price on the 1st was mainly due to the retreat of expectations for a rapid U.S. interest rate cut. The Fed decided to keep the benchmark interest rate unchanged at 5.25?5.5% at its first Federal Open Market Committee (FOMC) regular meeting of the year on the 31st of last month (local time). In particular, the possibility of a rate hold in March increased. Fed Chair Jerome Powell said at a press conference, "It will be difficult for the FOMC to reach a level of confidence to cut rates by the March meeting," adding, "We want to see more good data." This statement is interpreted as placing more weight on a rate cut possibility in May rather than March.

Within the cryptocurrency industry, there are also assessments that the worst is over. On the 2nd, the Xangle research team noted in their weekly report, "On February 1st, BlackRock's Bitcoin spot exchange-traded fund (ETF), IBTC, surpassed the trading volume of Grayscale's GBTC for the first time," adding, "This is an important figure indicating that the impact of GBTC's profit-taking sales on Bitcoin's price decline is diminishing."

They further added, "Although Chair Powell's hawkish remarks at the February 1st FOMC cooled expectations for a March rate cut, causing a temporary drop in Bitcoin's price, expectations for a rate cut within the year and the Bitcoin halving event remain valid factors supporting price increases."