[Market Update] Bitcoin falls below 130 million won amid Fed rate decision and shutdown concerns

Source: BlockMedia Original Title: [Crypto Market Update] Bitcoin Falls Below 13 Million Won Amid External Variables… Spread of Shutdown Concerns Original Link: https://www.blockmedia.co.kr/archives/1035916 Bitcoin has fallen below 130 million won ahead of the US Federal Reserve(Fed and Federal Reserve)'s first interest rate decision of the year. Concerns over a potential US federal government shutdown(and global macroeconomic uncertainties have dampened investor sentiment across the digital asset market.

As of 8:30 a.m. on the 26th, on domestic digital asset)and virtual asset( exchanges like Upbit, Bitcoin was traded at 128.36 million won, down 2.5% from 9 a.m. the previous day. On a major global exchange, it was recorded at $86,494, down 3.24%. At the same time, Ethereum dropped 5.1% to $2,805, and XRP)XRP( was traded at $1.83, down 4.43%.

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According to CoinGlass, approximately $181.31 million)about 263.8 billion won( worth of positions were liquidated in Bitcoin over the past 24 hours. Of these, about 97.87% were long)buy( positions. In the entire digital asset market, liquidations totaled $65.55 million)about 9.54 billion won(.

This decline occurred amid growing investor caution ahead of several external factors, including the US interest rate decision, the potential government shutdown, and tech company earnings reports. The Federal Reserve is widely expected to keep the benchmark interest rate unchanged at 3.5–3.75% during the upcoming January FOMC meeting scheduled for the 27th–28th)local time(. As a result, the impact of this FOMC on financial markets is expected to be limited.

Market attention is more focused on Federal Reserve Chair Jerome Powell’s press conference than on the rate decision itself. Market participants believe that depending on his remarks, expectations for future monetary policy could shift, potentially increasing market volatility.

Additionally, political tensions within the US are also weighing on the market. Senate Majority Leader Chuck Schumer announced he would block large spending bills if they include Department of Homeland Security funding, thereby stalling budget negotiations. This increases the likelihood that the US federal government will enter a partial shutdown at the end of January.

The US Congress must pass a budget by the 30th; failure to do so could trigger another shutdown. This budget conflict is linked to the shooting incident involving immigration enforcement officers in Minneapolis, Minnesota, on the 24th)local time(, which resulted in the death of Alex Jeffrey Pretti)37(, intensifying political clashes over the Department of Homeland Security budget.

Betting platform Polymarket)Polymarket( is reflecting an 80% probability that the US government will shut down by the end of this month. Financial analysis outlet The Kobeissi Letter)The Kobeissi Letter( states, “The possibility of a federal government shutdown is significantly increasing market uncertainty.”

This week, major tech companies included in the so-called ‘Magnificent 7)Magnificent 7·M7(’ are set to report earnings. On the 28th, Microsoft, Meta, and Tesla will release their results, followed by Apple and Amazon on the 29th.

Amid ongoing concerns over external variables, Bitcoin’s price has been declining, with some analysts suggesting it could further fall below $80,000. Market analyst CrypNuevo)CrypNuevo( tweeted, “Currently, Bitcoin is below the mid-range of its medium-term trading band,” and “If the support at $86,300 breaks, there is a possibility of further decline to the low $80,000s within the next few weeks.”

He added, “Even a short-term rebound could serve as a selling opportunity.”

Meanwhile, the Alternative Fear & Greed Index, which measures investor sentiment in the digital asset market, remained at 25 points today, unchanged from the previous day. The index indicates that the closer the value is to 0, the stronger the sell sentiment, while values near 100 suggest a strong buy tendency.