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Source: Newsmaker.id
The crypto market remained relatively stable during Thursday's trading (Sept 17) as investors digested the Federal Reserve's decision to raise interest rates by 25 basis points to the 4.00% range. Bitcoin (BTC) held steady around the US$76,000 level, reflecting a muted market response since the hike had already been largely priced in by market participants.
Downward pressure on Bitcoin had mounted leading up to the Fed's decision due to concerns that tighter monetary policy might dampen investor appetite for risk assets. Additionally, the failure to pass the Clarity Act in the US Senate weighed on market sentiment, as investors remain in limbo regarding regulatory certainty for the crypto industry. Bitcoin had previously dipped toward the US$75,000 mark before staging a recovery.
Regarding monetary policy, statements from Fed Chair Kevin Warsh continued to exert pressure by emphasizing that US inflation remains a primary concern. This hawkish stance led the market to consider the possibility that interest rates could remain elevated for longer or even rise further. Such conditions typically pose a challenge for crypto assets, as investors have access to higher-yielding alternatives like US government bonds.
Nevertheless, the crypto market began to recover following the earlier pressure. Ethereum (ETH) climbed toward the US$2,400 range, while XRP, Solana (SOL), Cardano (ADA), and BNB also posted gains. Solana traded around US$140 and BNB hovered near US$680, while Dogecoin (DOGE) saw a modest rebound alongside renewed interest in risky digital assets.
Beyond Fed-related factors, crypto price movements were also influenced by the geopolitical situation in the Middle East. A partial easing of tensions between the United States and the Houthi group provided a slight boost to global market sentiment. A drop in oil prices—following indications of alternative distribution routes from Saudi Arabia—also helped alleviate concerns regarding global inflationary pressures that could impact central bank policies.
Newsmaker Analysis: Current Bitcoin price action indicates that the market is not solely focused on interest rate hike decisions but is beginning to factor in the Federal Reserve's future policy trajectory. As long as the US dollar and Treasury yields remain strong, the scope for Bitcoin to appreciate is likely limited. However, BTC's ability to hold the US$76,000 level demonstrates demand from investors who view market corrections as opportunities to accumulate. Looking ahead, market attention will focus on US inflation data, the future path of interest rates, developments in crypto regulation, and global risk sentiment. Should macroeconomic pressures begin to ease, Bitcoin and altcoins could potentially gain further recovery momentum. (arl)
Source: Newsmaker.id