Bitcoin prices have stabilized, hovering around $78,000. This pause follows a recent surge, which prompted profit-taking, coupled with higher-than-expected inflation data from the U.S. that has dampened expectations for interest rate cuts by the Federal Reserve. However, major altcoins like Ethereum and Solana have continued to rise.
As of 8 a.m. on August 27, Bitcoin was trading at $78,707, down 0.22% from the previous day, according to global cryptocurrency market site CoinMarketCap.
Ethereum saw a price increase of 1.83%, reaching $2,494. Binance Coin (BNB) and Solana also rose by 1.29% and 2.43%, respectively, trading at $704 and $99. In contrast, Ripple (XRP) fell by 2.78% to $1.40.
The recent decline in Bitcoin's price is attributed to waning expectations for interest rate cuts, which had previously driven its price upward. The U.S. Personal Consumption Expenditures (PCE) price index for July rose 3.7% year-over-year, exceeding market expectations and increasing uncertainty surrounding the Federal Reserve's monetary policy in September. If inflationary pressures persist, it may be challenging for the Fed to implement rate cuts, leading to a stronger dollar and a dampened investment sentiment towards risk assets like Bitcoin.
Additionally, the influx of profit-taking following a rapid price increase has also contributed to limiting further gains.
The upward trend in major altcoins is seen as a reflection of growing investor sentiment across the cryptocurrency market. Notably, Ethereum and Solana have benefited from continued inflows through spot exchange-traded funds (ETFs), supported by institutional investor demand.
As of 8 a.m. on August 27, Bitcoin was trading at approximately 1,094,740,000 won ($78,664) on the domestic exchange Bithumb, marking a 1.13% increase from the previous day. The 'Kimchi Premium' stood at 0.497%, indicating that Bitcoin prices in South Korea are higher than those overseas.
* This article has been translated by AI.
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