[Bitcoin Now] Weakness Continues Amid Imminent Full-Scale War in Ukraine... Investor Sentiment Remains 'Frozen'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As full-scale war between Ukraine and Russia looms, the U.S. stock market is fluctuating, causing the price of Bitcoin, the representative cryptocurrency, to continue its downward trend.

According to the domestic cryptocurrency exchange Upbit, as of 11 a.m. on the 24th, the price of Bitcoin is trading at 45.17 million KRW, down 0.83% (377,000 KRW) compared to the previous day.

Tensions between Russia and Ukraine are escalating. On the 23rd (local time), U.S. Secretary of State Antony Blinken stated on NBC that a full-scale Russian invasion of Ukraine could occur during the night. While he could not specify the exact time or location of the attack, he added, "There is still an opportunity to avoid a major invasion by Russia." Earlier, a senior U.S. Department of Defense official estimated that more than 150,000 Russian troops are deployed in the border areas of Russia and Belarus adjacent to Ukraine, and that they are fully prepared to launch a full-scale invasion upon receiving orders.

As the conflict intensifies, the U.S. stock market plunged, affecting Bitcoin, which has shown a correlation with the Nasdaq index this year. The tech-heavy Nasdaq index closed at 13,037.49, down 344.03 points (2.57%). On the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 464.85 points (1.38%) to 33,131.76, and the large-cap S&P 500 dropped 79.26 points (1.84%) to 4,225.50.

With ongoing uncertainty about Bitcoin prices, investor sentiment remains subdued. Dunamu, the operator of Upbit, reported its Digital Asset Fear and Greed Index at 32.86 on the day, indicating a 'Fear' stage. This is a decline of 4.23 points compared to 37.09 a week earlier. Dunamu’s Digital Asset Fear and Greed Index is divided into stages: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. A movement toward greed indicates increased buying interest among market participants, whereas a shift toward fear reflects a growing fear of asset decline, leading to market exits and a chain reaction of price drops.