Crypto Dragged by Interest Rates: Focus Shifts to Fed Minutes
Bitcoin weakened at the start of the week, extending the crypto market's sluggish phase after the market entered risk-off mode amid uncertainty over the direction of US interest rates. In the latest update on Monday (February 16th), BTC was trading at $67,716, down -1.87% from its previous close, after briefly reaching $69,999 but bouncing back to hit a daily low of $67,329. Volatility is also increasingly "sparky" due to thin liquidity due to holidays in the US and parts of Asia.
From a fundamental perspective, buying momentum is still being held back by the tug-of-war of Fed policy expectations: softer inflation has sparked hopes of a rate cut, but the market remains uncertain about the timing—hence, the flow into speculative assets has not fully recovered. This week's focus turns to the FOMC minutes (Wednesday) and the big Q4 PCE and GDP figures (Friday), which have the potential to trigger the next direction. At the same time, momentum is also reportedly weakening as spot Bitcoin ETF inflows decline, making the $70,000 area once again a psychological barrier that is difficult to break through.
Amid market concerns about forced selling, Strategy (MSTR) has spoken out: the company stated it could cover its debt obligations even if BTC falls to $8,000, while asserting that its asset reserves remain adequate. Strategy currently reports holding 714,644 BTC (accumulated through equity issuance and debt financing), with an average acquisition price of approximately $76,056 per BTC. However, pressure remains, as Strategy reported a net loss of $12.4 billion in its December quarter report—confirming that its large bet on Bitcoin remains the company's "main story."
BTC's correction also dragged down altcoins: ETH was at $1,967.56 (-1.90%), XRP at $1.49 (-1.97%), BNB at $612.74 (-1.15%), SOL at $84.07 (-4.07%), ADA at $0.281407 (-0.95%), and DOGE at $0.100569 (-6.15%)—indicating that weakening risk appetite remains prevalent across the crypto market. (The TRUMP/MAGA ticker also moved at $0.039475 (-0.70%).)
Source: Newsmaker.id
