Bitcoin Boom: Base Rate Cut Sparks Soaring Expectations – 80 Million Won to 85 Million Won in a Single Leap
Virtual Asset Industry Sees Growing Expectations for Bitcoin Rally After US Base Rate Cut
US Base Rate Cut Expected to Increase Liquidity and Drive Capital Inflow into Virtual Asset Market
The virtual asset industry is abuzz with growing expectations for a Bitcoin rally after the US Federal Reserve lowered its benchmark interest rate by 0.50%p for the first time in four and a half years. According to a recent analysis by the Dunamu Upbit Investor Protection Center, the US base rate cut could lead to an increase in liquidity, driving more funds into the virtual asset market.
This development is seen as a boon for most assets, as it encourages investors to favor riskier assets. In fact, the price of one Bitcoin on Upbit jumped from 80 million won to 85 million won before and after the announcement of the base rate cut. Upbit also predicts that variables such as a potential interest rate hike in Japan and China’s sale of US Treasury bonds could lead to a decline in the value of the dollar, further increasing demand for virtual assets.
Bithumb, another major player in the virtual asset market, also analyzed the situation in its weekly report. According to Bithumb, expectations for a Bitcoin rally are growing due to the base rate cut, and additional rate cuts could lead to a bull market for altcoins.
The US benchmark interest rate has been lowered by 0.5%p from the previous 5.25-5.50% to 4.75-5.0%. This move is seen as a significant development in the virtual asset market, with many investors eagerly watching the market’s response to the rate cut.