Bitcoin (BTC) price dropped below $116,000 (approximately 161.24 million won), recording its largest time-unit adjustment in two weeks. This is attributed to the Federal Reserve's decision amplifying market uncertainty.
This sharp decline occurred immediately after the Fed maintained its benchmark interest rate at 4.25-4.50%. Simultaneously, Fed Chair Jerome Powell stated that "no decision on interest rate cuts has been made" at present, dampening market expectations. This was in stark contrast to previous mentions of potential rate cuts.
Market analysts interpret this statement as a potential signal of a change in the Fed's stance. With the previous statement's wording changing from "uncertainty has decreased" to "still remains high", the market began to lower expectations of year-end rate cuts.
At the reporting time of 8:38 PM (UTC), Bitcoin dropped 0.92% to $116,373 (approximately 161.75 million won). Ethereum (ETH) fell 1.74% to $3,712 (approximately 5.16 million won), Solana (SOL) declined 1.9% to $173 (approximately 240,000 won). XRP dropped 2.52% to $3.04 (approximately 4,226 won), and Binance Coin (BNB) decreased 1.46% to $775 (approximately 1.07 million won).
Bitfinex assessed that this price movement has reduced short-term rebound potential. While Q2 US GDP increased by 3% quarter-on-quarter, this was mostly due to reduced imports. The Personal Consumption Expenditures (PCE) price index slowed to 2.5%, but the Fed remains cautious about persistent inflation risks.
Consequently, the likelihood of the Fed maintaining its high-interest rate policy has increased, and the Bitcoin market faces potential further decline. Experts advise that Bitcoin could retreat to around $114,000 (approximately 158.46 million won) in the short term, and investors should closely monitor order flows, volatility skew, and funding rates.
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