Bitcoin (BTC) Didn't Die Amid Interest Rate Hike Shock... Rally to $88,000 Begins

▲ Bitcoin (BTC)

Despite the shock of the US central bank's benchmark interest rate hike, Bitcoin successfully rebounded, defending the $75,000 mark. However, experts' future outlooks are sharply divided amid concerns of further tightening.

According to cryptocurrency media outlet Cointelegraph on September 17 (local time), immediately after the Federal Reserve (Fed) raised the benchmark interest rate by 0.25 percentage points, adjusting the policy rate target range from 3.75% to 4%, volatility across the cryptocurrency market, including Bitcoin (BTC), expanded rapidly.

Immediately after the interest rate hike announcement, Bitcoin temporarily fell below the $75,000 mark during intraday trading but quickly recovered losses, reaching around $76,400. Prior to this monetary policy decision, Bitcoin had been undergoing a correction, facing complex downward pressures such as the failure of the US crypto market structure bill to pass a Senate vote, outflows from exchange-traded funds (ETFs), rising US Treasury yields, and large-scale liquidation events. Market analysis firm Santiment pointed out that discussions among investors on social media regarding the interest rate and the 0.25 percentage point hike decision surged ahead of the Federal Open Market Committee (FOMC) meeting.

Among experts, optimism and pessimism regarding Bitcoin's future trajectory are sharply divided. One market expert diagnosed that Bitcoin has already bottomed out at the $57,000 level and stated that he has no plans to sell previously purchased Bitcoin. While identifying $71,000 as the market's maximum pain point, he maintained a bullish outlook towards $88,000. Conversely, renowned cryptocurrency analyst Ali Martinez stated he is preparing for further selling pressure, presenting the short-term holder realized price of $71,200 as a key baseline, and plans to accumulate more if it falls to that level.

Market participants are focused on whether this benchmark interest rate hike will be a one-off measure or the beginning of a new tightening cycle. The Fed's latest dot plot projections suggest the possibility of at least one more interest rate hike within the year, making the macroeconomic tightening stance a key variable determining the future direction of the cryptocurrency market.

[Article Key Summary]

-Volatility in the cryptocurrency market expanded as the Federal Reserve (Fed) raised the benchmark interest rate by 0.25 percentage points, adjusting it from 3.75% to 4%.

-Bitcoin (BTC) temporarily broke below the $75,000 mark during intraday trading but recovered to the $76,400 level, yet experts' forecasts were divided.

-With the possibility of further interest rate hikes by the Fed, defending the $71,200 short-term support level is considered a watershed moment for the future market trend.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*