Bitcoin plunges as expectations for a rate cut fade, $113,000 level in jeopardy

Bitcoin price per coin drops 2.74% from the previous day

9% gap from the all-time high of $124,500

Bitcoin, the leading cryptocurrency, is seeing its decline accelerate on the 19th (local time) as the likelihood of a U.S. policy rate cut diminishes.

According to Coinbase, a U.S. cryptocurrency exchange, as of 5:39 p.m. Eastern Time (2:39 p.m. Pacific), the price of one Bitcoin was $113,546, down 2.74% from 24 hours ago (about ₩158,190,000).

After falling below the $115,000 line the previous day, it slipped as low as the $112,700 range at one point today, even threatening the $113,000 mark.

This is the lowest level since the 2nd and marks more than a 9% gap with its all-time high in the $124,500 range reached on the 14th.

At the same time, Ethereum, the second-largest cryptocurrency by market cap, was down 4.71% to $4,149. XRP (Ripple) declined 6.53% to $2.89.

Solana and Dogecoin also dropped 2.64% and 5.09%, trading at $179.06 and $0.21, respectively.

With the U.S. July Producer Price Index, released on the 14th, coming in well above expert forecasts, expectations for a Federal Reserve (Fed) rate cut in September have diminished.

Additionally, ahead of Jerome Powell’s speech at the Jackson Hole economic policy symposium on the 22nd, investor sentiment towards risk assets has weakened further, driving prices down.

Crypto-focused media outlet CoinDesk analyzed, “Investors are reconsidering the possibility of a Fed rate cut in September after a stronger-than-expected Producer Price Index (PPI) report,” and pointed out, “Today's drop is due to concerns that Powell may make hawkish remarks during his Jackson Hole speech.”

Jihui Yoo, Hankyung.com correspondent keephee@hankyung.com