Bitcoin has fallen below the $64,000 mark due to the U.S. Federal Reserve's hawkish monetary policy and a strong performance in the U.S. stock market.
As of 8 a.m. on June 22, Bitcoin was trading at $63,719, down 0.79% from the previous day, according to global cryptocurrency market site CoinMarketCap.
Major altcoins also showed weakness. At the same time, Ethereum traded at $1,715.72, down 1.53% from the previous day. Ripple (XRP) fell by 2% to $1.12, while Solana dropped 1.02% to $72.91. Binance Coin (BNB) was down 0.16% at $586.33, and Tether recorded a slight decline of 0.01% to $0.99.
Market analysts attribute Bitcoin's decline to the Fed's hawkish stance. On June 17, the Federal Open Market Committee (FOMC) decided to keep the benchmark interest rate unchanged at 3.50% to 3.75%. Half of the 18 committee members projected that the year-end interest rate would be higher than the current level. Typically, rising interest rates weaken the preference for riskier assets.
Additionally, the shift of investment funds to the U.S. stock market is putting pressure on the cryptocurrency market. Analysts suggest that strong performances from companies like SpaceX, led by Elon Musk, and major tech stocks are drawing investor sentiment away from cryptocurrencies.
Bitcoin's market capitalization ranking has also declined. As of June 21, Bitcoin had slipped to the 15th position in global asset market capitalization. With the semiconductor boom boosting tech stocks, there are concerns that SK Hynix's market capitalization could surpass Bitcoin's. Given that Bitcoin once ranked within the top five in global asset market capitalization, this decline reflects a significant drop in its market standing.
Meanwhile, on the domestic exchange Bithumb, Bitcoin was trading at approximately 96.18 million won ($62,742), down 0.52% from the previous day. The so-called 'Kimchi premium,' which indicates the difference between domestic and international prices, was recorded at -1.42%.
* This article has been translated by AI.
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