The possibility of a U.S. interest rate cut has increased, but Bitcoin continues to remain weak.

Source: DecenterKorea Original Title: The possibility of a US rate cut has increased, but Bitcoin remains in a 'bearish' trend [D.Centers Market Outlook] Original Link: https://www.decenter.kr/NewsView/2H0LQHAOPZ/GZ03

As expectations for a U.S. interest rate cut grow next month, the New York stock market has rebounded, but the cryptocurrency market is showing weakness. Investor sentiment towards risk assets has not revived, and the price of Bitcoin, the leading cryptocurrency, has fallen about 30% compared to its peak last month.

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 8:10 AM on the 26th, Bitcoin ( BTC ) is trading at $87,409.94, down 1.35% from 24 hours ago. This is about a 30% decrease compared to the all-time high of $126,000 recorded last month.

Altcoins are also weak. Ethereum ( ETH ) has risen slightly by 0.18% ( to trade at $2963.99, while XRP ) has decreased by 1.64% to $2.20. Solana ( SOL ) is also trading down by 0.13% at $138.86.

Cryptocurrency prices continue to decline as the aversion to risk assets deepens, despite the increased likelihood of an interest rate cut next month. In particular, the exit of institutional investors is ongoing. On this day alone, there was a net outflow of $418 million from the U.S. Bitcoin spot ETF. This brings the total net outflow to $2.2 billion over the past week.

Marcus Tilleen, the founder of 10x Research, stated that “it suggests that institutional investors have halted their Bitcoin investments” and added that “as long as the selling pressure from ETFs continues, it will be difficult for the market to maintain an uptrend or rebound.”

The actual sentiment for cryptocurrency investment is still in a state of 'extreme fear.' The Fear and Greed Index from the cryptocurrency data analysis company Alternative.me has risen by 1 point to 20 points compared to the previous day. This index indicates that the closer it is to 0, the more the investment sentiment is repressed, and the closer it is to 100, the more it indicates market overheating.

However, there are analyses suggesting that expectations for a shift to an increase remain as the possibility of an interest rate cut next month is growing. Earlier, Bloomberg reported, citing sources, that Kevin Hassett, chairman of the White House Council of Economic Advisers(NEC), has emerged as a strong candidate for the next chair of the U.S. Federal Reserve(Fed·Fed). Chairman Hassett is known to support accommodative monetary policy and is a prominent advocate for an interest rate cut next month.

After the report was released, the probability of a rate cut next month on the Chicago Mercantile Exchange ( CME ) FedWatch soared to 83%.