Bitcoin falls for the first time in 4 days, as the cautious stance regarding the rate cut by the US financial authorities is suggested.

December 19, 2024 7:34 AM JST
Temporarily down 5.3% to $0.1 million 752 - exceeding $0.1 million 8000 for the first time the previous day.
Some traders are risk-averse - with some suggesting that the long-term impact is limited.
The cryptocurrency Bitcoin fell for the first time in 4 days. Speculative moves in the financial markets retreated overall due to indications from US financial officials that they should be more cautious about the pace of interest rate cuts.
Bitcoin hit a temporary low of $0.1 million 752, down 5.3%. The token had exceeded $0.1 million 8000 for the first time the previous day. According to data compiled by Bloomberg, the digital tokens in the top 7 market cap rankings all declined.

Zahiya Ebtikar, founder of the cryptocurrency fund, Split Capital, stated that the global market is factoring in the US Federal Reserve weakening its dovish stance in 2025. As a result, event traders and market makers in the cryptocurrency space are avoiding risks.
The Federal Open Market Committee (FOMC) decided to cut interest rates for the third consecutive meeting at the regular meeting held on December 17-18. However, the expected number of rate cuts in 2025 has decreased from previous estimates, with officials indicating a cautious stance regarding the pace of reduction.

David Lawant, who serves as the research chief at Falcon X, a cryptocurrency exchange, pointed out that while the rate cut outlook is currently affecting prices, the correlation between Bitcoin and major stock market indices is decreasing, suggesting that there may not be a long-term impact.

"The slowdown in the expected rate cuts for 2025 is not surprising at all, but it is weighing slightly on risk assets, including cryptocurrencies," he said, adding, "Macroeconomic factors traditionally influence cryptocurrency price movements, but with markets anticipating policy changes under the next administration, industry-specific factors are likely to dominate in the coming weeks to months."