[Bitcoin Now] Falls to 44 Million Won Range... Continuing Fed Shock

11 of 18 FOMC Members Say "At Least Two Rate Hikes by 2023"
Trading Volume of Korea's Top 4 Cryptocurrency Exchanges Drops by Over Half in a Week

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen to the 44 million KRW range. The possibility of early tightening revealed by the U.S. Federal Reserve (Fed) on the 16th (local time) continues to exert influence.

According to the domestic cryptocurrency exchange Upbit, as of 9:51 a.m. on the 18th, Bitcoin recorded 44.55 million KRW, down 0.68% from the previous day. It rose to 47.4 million KRW on the 14th but has been declining for four consecutive days since then.

The Fed's unexpected moves appear to be continuously having a negative impact on the cryptocurrency market. On the 16th, the Fed announced through the Federal Open Market Committee (FOMC) that it would keep the benchmark interest rate at the current 0-0.25% and continue quantitative easing by purchasing bonds worth about $120 billion (approximately 136 trillion KRW) monthly. However, the dot plot indicating FOMC members' interest rate forecasts suggested the possibility of early tightening. Of the 18 members, 13 predicted at least one rate hike by 2023, with 11 members forecasting two hikes.

However, Fed Chair Jerome Powell explained, "The FOMC discussed tapering asset purchases," but added, "It is still far from reaching the criteria to discuss tapering." Currently, the Fed is injecting assets aiming for maximum employment and sustained 2% inflation.

The cryptocurrency market has historically reacted strongly to liquidity. When COVID-19 occurred last year and countries injected money to cope with the economic crisis, Bitcoin prices also rose accordingly. Since then, whenever concerns about liquidity reduction arose, the cryptocurrency market has been shaken. On February 25, when the U.S. 10-year Treasury yield exceeded 1.5%, Bitcoin plunged 4.13%.

Meanwhile, the domestic cryptocurrency market has shown a decrease in trading volume amid continuous delisting by exchanges. According to the cryptocurrency market data site CoinMarketCap, as of 9:48 a.m. that day, the 24-hour trading volume of the four major domestic cryptocurrency exchanges (Upbit, Bithumb, Korbit, Coinone) was $4.12479 billion (approximately 4.6684 trillion KRW). This is more than a 50% decrease from the $10.16121 billion recorded on the 10th. The day before, Bithumb announced it would terminate trading support for four cryptocurrencies: Aeternity, Aurora, Dragonvein, and DVP.

This content was produced with the assistance of AI translation services.