Bitcoin Rebound On Expectaion of U.S. Fed's Two Rate Cuts

U.S. Fed Freezes Interest Rates...ESP Notifies Two Rate Cuts This Year
BTC Holds $86,000 On Mar. 20…Altcoin Majority, Rises More Than 5%
Glassnode Points At Long-Term Holder Activities..."Expecting Rerising"

Cryptocurrencies including Bitcoin(BTC) rebounded on Mar. 20 on the message from the U.S. Federal Reserve that they could cut interest rates twice within the year.

In its monetary policy decision released after the Federal Open Market Committee(FOMC), the Fed announced that it would freeze the benchmark interest rate to 4.25 to 4.50% in March while implementing two rate cuts this year. In particular, the Fed predicted the benchmark interest rate to 3.9% at the end of this year through its economic forecast(SEP) released at the end of the quarter, suggesting that there will be two rate cuts by 0.25%p by the end of the year.

Bitcoin remained around $86,000 during the day in anticipation of a rate cut, and a number of altcoins recorded a rise of more than 5%.

◇Bitcoin = Bitcoin price is $85,865 at 4:30 p.m. on Mar. 20, 2025. The Bitcoin share(dominance) was 61.60%.

The long(up) and short(down) betting ratios in the Bitcoin futures market stood at 50.91% and 49.09%, according to the on-chain analytics platform Sigbtc.

Despite Bitcoin's recent underperformance, experts have argued for optimism about Bitcoin from a long-term perspective.

On-chain analysis platform Glassnode has claimed that the Bitcoin bull market rally will resume based on the movement of calm Bitcoin long-term holders.

In a report published on the 19th, Glasnod explained that "bitcoin long-term holders" still hold a lot of proceeds from wallets holding Bitcoin for more than 155 days, which is slowing the sale.

"Bitcoin long-term holders seem to expect a rise in Bitcoin prices later this year," Glasnod said. "The unique market dynamics are expected to last longer."

◇Upward Coin = The cryptocurrency that recorded the largest increase from the previous trading day at 4:30 p.m. on Mar. 20 was Vana(VANA), up about 11%.

Vana is a blockchain-based protocol that allows users to upload data that can be used for artificial intelligence(AI) learning to data DAO and receive rewards. Vana token is used as key currency for data purchases.

◇Fear Greed Index = The digital asset fear-greed index provided by Alternative has entered the 'neutral' stage with 49 points. The neutral stage is a section where the psychological resistance and support of market participants appear, and important decision-making actions appear in future price movements.

The cryptocurrency relative strength index(RSI) provided by Sigbtc was 61.3, which was in a 'neutral' state. RSI sets the relative strength between the upward and downward pressure of a particular asset price and is an indicator of a measure of over-purchasing and over-selling of a particular asset.

권승원 기자 ksw@blockstreet.co.kr