Bitfinex: The Federal Reserve's interest rate cut triggers volatility in the Bitcoin market

ChainCatcher news, the Bitfinex Alpha report indicates that driven by short covering and speculative buying, Bitcoin has fallen to the $112,500 range after the Federal Reserve's interest rate cut, briefly touching $118,000.

Although profit-taking has triggered market volatility, the derivatives market has shifted from a risk-averse stance to a more balanced position allocation, alleviating concerns about a downturn. On-chain data shows that Bitcoin's current trading price is above 95% of its supply cost (approximately $115,200), and most holders have returned to profitability.

The Federal Reserve cut interest rates for the first time since 2024, highlighting its ability to seek a delicate balance between a weak labor market and persistently high inflation. Macroeconomic pressures, sovereign digital currency initiatives, and regulatory breakthroughs are collectively shaping the global cryptocurrency landscape, factors that may redefine the digital asset market.