Bitcoin continues to weaken as the U.S. Federal Reserve hints at the possibility of additional interest rate hikes in the second half of the year. Some analysts predict that the prolonged high-interest rate environment and strong stock market could limit Bitcoin's potential for growth in the near term.
As of 8 a.m. on June 18, Bitcoin was trading at $64,237, down 2.24% from the previous day, according to global cryptocurrency market site CoinMarketCap.
Major altcoins also experienced declines. At the same time, Ethereum was trading at $1,738.88, down 3.09% from the previous day. Ripple (XRP) fell 2.64% to $1.18, while Solana dropped 2.43% to $71.81. Binance Coin (BNB) decreased by 0.99% to $599.57. Tether remained stable at $0.99.
Market sentiment has soured for risk assets like Bitcoin as the Fed's hawkish stance becomes clearer. Although the Fed decided to keep interest rates steady, it indicated the possibility of further rate hikes later this year. The median forecast for the federal funds rate by the end of the year has risen to 3.8%, up from 3.4% projected in March.
Some analysts are also expressing caution regarding Bitcoin's long-term return outlook. Mark Hulbert, a senior columnist for MarketWatch, recently predicted in a column that Bitcoin's price could stabilize around $120,000 (approximately 181.5 million won) in 100 years. He noted that as Bitcoin's issuance approaches its limit, the growth rate of the network may slow, potentially reducing the pace of value appreciation.
Meanwhile, at the same time, Bitcoin was trading at approximately 96,939,000 won ($63,545) on the domestic exchange Bithumb, down 0.93% from the previous day. The so-called 'Kimchi premium,' which indicates the difference between domestic and international prices, was recorded at -1.211%.
* This article has been translated by AI.
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