Fed's Interest Rate Decision Puts Pressure on Bitcoin Prices
CryptoQuant analyst Novaque Research says that the Federal Reserve's decision to maintain interest rates has failed to boost Bitcoin, and prices will remain under pressure due to weak U.S. demand.
The Federal Reserve voted 9 to 3 on July 29 to keep the interest rate target range unchanged at 3.50% to 3.75%, but maintaining interest rates is different from cutting them and has not brought new liquidity stimulation, which is reflected in Bitcoin's internal demand indicators.
Coinbase premium index remains deeply negative, close to -0.11, indicating that Bitcoin is priced weaker on Coinbase compared to offshore platforms, pointing to sluggish U.S. spot demand; total open interest remains below the 100-day moving average, and CME options exposure has significantly contracted from the peak in the first quarter.
In South Korea, retail investors are reducing their holdings in leveraged ETFs and turning to spot buying after the financial regulatory authorities raised the base margin for domestic and foreign single-stock leveraged products from 10 million Korean won to 30 million Korean won in cash starting July 31.