[Bitcoin Now] Investor Sentiment Recovers, Approaching $42,000 Level

[Asia Economy Reporter Lee Jung-yoon] Following the increase in the U.S. benchmark interest rate, the price of Bitcoin, a leading cryptocurrency, is showing an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:08 PM on the 20th, the price of Bitcoin rose 0.61% from the previous day to $41,923 (50.96 million KRW).

The price of Bitcoin has been on the rise since the U.S. Federal Reserve (Fed) raised the benchmark interest rate by 0.25% on the 16th of this month (local time). This is due to a sense of relief that uncertainty has been removed following the rate hike, which has restored investor sentiment. On the 17th of this month, Bitcoin saw an increase of over 4% in a single day. The previous day, it surpassed $42,000 for the first time in nine days since the 10th of this month.

On this day, Dunamu, the operator of Upbit, reported a digital asset fear and greed index of 53.17, indicating a 'neutral' stage. Compared to 54.3 (neutral) the previous day, it fell by 1.14, but compared to 39.13 (fear) on the 13th of this month, a week ago, it rose by 14.04. Dunamu's digital asset fear and greed index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction indicates increased interest in buying among market participants, whereas moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.