Bitcoin rebounds after Fed announces two rate cuts this year

The US Federal Reserve, interest rate unchanged... Forecast two rate cuts this year through ESP
BTC maintains $86,000 during the day... Many altcoins rise more than 5%
Glassnode points to the movement of long-term BTC holders... "Bullish rally to resume"

Cryptocurrencies, including , rebounded on the 20th in response to the US Federal Reserve's (Fed) message that it could cut rates twice this year.

The Fed announced through the monetary policy decision statement released after the Federal Open Market Committee (FOMC) that it would keep the March benchmark interest rate at 4.25-4.50%, while forecasting two rate cuts this year. In particular, the Fed suggested through the quarterly released Economic Projections (SEP) that the benchmark interest rate would be 3.9% at the end of this year, implying two 0.25%p rate cuts by the end of the year.

Expectations of a rate cut kept above $86,000 during the day, and many coins recorded an increase of more than 5%.

◇ = As of 4 pm on the 20th, the price on Upbit was 12,616 million won. dominance was 61.60%.

According to on-chain analysis platform Glassnode, the long (bullish) and short (bearish) betting ratio in the futures market was 50.91% and 49.09%, respectively.

Despite the recent poor performance of , experts have argued for a long-term optimistic view on .

On-chain analysis platform Glassnode claimed that the bullish rally will resume, citing the movement of quiet long-term holders.

Glassnode explained in a report released on the 19th that wallets holding for more than 155 days, considered 'long-term holders', still hold a large amount of profits, and this is slowing down the selling pressure.

Glassnode said, "Long-term holders seem to be expecting a rise in prices by the end of this year," and "the unique market dynamics are likely to persist for a longer period."

◇ Rising Coins = As of 4 pm on the 20th, the cryptocurrency that recorded the largest increase compared to the previous trading day on Upbit was VANA, which rose about 11%.

VANA is a blockchain-based protocol where users can upload data that can be used for AI learning to a DAO (Decentralized Autonomous Organization) and receive rewards. The VANA token is used as the base currency for data purchases.

◇ Fear and Greed Index = The Digital Asset Fear and Greed Index provided by Alternative is at 49 points, entering the 'Neutral' stage. The Neutral stage is where psychological resistance and support from market participants appear, and important decision-making actions occur regarding future price movements.

The Cryptocurrency Relative Strength Index (RSI) provided by Glassnode is 61.3, recording a 'Neutral' state. RSI measures the relative strength between the upward and downward pressure of a specific asset price, indicating the overbought and oversold levels of the asset.

Reporter Kwon Seung-won ksw@blockstreet.co.kr