"No relief rally"...Bitcoin and Ethereum 'shaken' despite interest rate freeze

▲ Bitcoin (BTC), Ethereum (ETH)

Bitcoin (BTC) and Ethereum (ETH) showed a downward trend after the U.S. Federal Reserve's (Fed) decision to freeze interest rates, once again reacting sensitively to macroeconomic variables.

Cryptocurrency specialized media Decrypt recently reported that major virtual asset prices weakened amid ongoing market uncertainty as the Fed froze its benchmark interest rate for the third consecutive time. The Fed maintained interest rates in the range of 3.50% to 3.75%, continuing its cautious monetary policy stance.

This decision was not significantly different from market expectations, but the fact that inflation still exceeded the target acted as a factor pressing down on investor sentiment. The Fed maintained its stance to continue data-driven policy judgments until the inflation rate stably reaches the target level.

Bitcoin and Ethereum expanded their volatility amidst this macroeconomic environment. Despite the interest rate freeze, the market focused more on the possibility of continued tightening rather than expectations of increased liquidity, leading to selling pressure across risk assets. In particular, concerns that rising energy prices and geopolitical tensions could stimulate inflation dampened investor sentiment.

The ongoing differences of opinion within the Federal Open Market Committee (FOMC) regarding the direction of policy are also cited as a factor increasing market uncertainty. While some members raised the need for interest rate cuts, the majority opted for a 'wait-and-see stance,' leaning towards maintaining the current level.

Ultimately, the virtual asset market is evaluated to have entered a phase where it is more significantly influenced by future monetary policy paths and macroeconomic trends than by short-term events like interest rate freezes. Investors are watching the timing of interest rate cuts and inflation trends to gauge the direction of Bitcoin and Ethereum.

*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.*