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| A real-time price chart for Bitcoin between July 23 and 24 / Screenshot from CoinMarketCap |
By Lee Min-hyung
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| U.S. Fed Chair Jerome Powell / AP-Yonhap |
Bitcoin has extended a slight loss ahead of a possible giant rate hike of 75 basis points by the U.S. Fed this week, with investors remaining cautious due to fears concerning the after-effects of the hawkish move.
The price of Bitcoin fell by more than 1 percent as of 2 p.m. Sunday from a day earlier. The world's largest cryptocurrency was traded at around $22,700, showing no clear signs of a rebound. Ethereum also lost ground.
The two major cryptocurrencies have been trapped in a boxed-in range after their values steeply tumbled following May due to freezing market sentiment caused by the Fed's rate hikes.
The weak performance was attributable to heightened financial uncertainty as the July 26-27 Federal Open Market Committee meeting approaches. The U.S. monetary authority is widely forecast to increase its key rate by 0.75 percentage points again to curb soaring inflation.
This possibility is putting huge pressure on crypto investors at a time when major cryptocurrencies such as Bitcoin and Ethereum continue to display lukewarm price patterns.
The move was in sync with the overall plunges of U.S. stock indices. The S&P 500 closed with a drop of 0.93 percent on Friday. The Nasdaq also fell by 1.87 percent during the same period.
The overall crypto market is expected to remain bearish from the near-term perspective due to the aggressive monetary stance of the world's largest economy.
Nevertheless, market players remain optimistic about the potential rebound of major cryptocurrencies.
"The Bitcoin price may face additional adjustment amid ongoing monetary tightening, but there still stands a chance for its potential rebound around the end of this year due to expectations for an end to the cycle of monetary tightening," a recent report published by Bithumb's research center said.
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