Bitcoin continues to weaken as the U.S. Federal Reserve signals the possibility of further interest rate hikes in the second half of the year. Some analysts predict that the prolonged high-interest rate environment and a strong stock market may limit Bitcoin's potential for growth in the near term.
According to CoinMarketCap, as of 8 a.m. on June 18, Bitcoin was trading at $64,237, down 2.24% from the previous day.
Major altcoins also experienced declines. At the same time, Ethereum was trading at $1,738.88, down 3.09%. Ripple (XRP) fell 2.64% to $1.18, while Solana dropped 2.43% to $71.81. Binance Coin (BNB) decreased by 0.99% to $599.57. Tether remained stable at $0.99.
Market analysts attribute the decline in risk asset investment sentiment, including Bitcoin, to the Fed's hawkish stance. Although the Fed decided to keep interest rates steady, it hinted at the possibility of additional rate hikes later this year. The median forecast for the federal funds rate by the end of the year is now 3.8%, up from 3.4% projected in March.
Some experts are also expressing caution regarding Bitcoin's long-term return outlook. Mark Hulbert, a senior columnist for MarketWatch, recently predicted that Bitcoin's price could remain around $120,000 (approximately 181.5 million won) in 100 years. He noted that as Bitcoin approaches its issuance limit, the growth rate of the network may slow, which could reduce the pace of value appreciation.
Meanwhile, on the domestic exchange Bithumb, Bitcoin was trading at approximately 96,939,000 won ($63,545), down 0.93% from the previous day. The so-called 'Kimchi premium,' which indicates the difference between domestic and international prices, was recorded at -1.211%.
* This article has been translated by AI.
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