Bitfinex Report: Fed Rate Cut Triggers BTC Market Volatility

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 market concerns about downside risks. 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's first interest rate cut since 2024 highlights 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.