[Bitcoin Now] US Stock Market Rises and Uncertainty Eases... Trading Volume Up 22.7%

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the representative cryptocurrency, is showing an upward trend due to the rise in the U.S. stock market.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:35 a.m. on the 23rd, the price of Bitcoin was $42,325 (approximately 51.38 million KRW), up 1.55% from the previous day.

The price of Bitcoin rose as the U.S. stock market climbed. On the 22nd (local time), the Nasdaq Composite Index, focused on technology stocks, and the Dow Jones Industrial Average rose 1.95% and 0.74%, respectively. The S&P 500 Index, centered on large-cap stocks, also increased by 1.13%. Ben Emons, Global Macro Strategist at Medley Global Advisors, explained, "Since last year, there has been a positive correlation between the stock market and Bitcoin, and this relationship has not disappeared but continues." The U.S. stock market showed an upward trend as the fundamentals of companies were highlighted despite Federal Reserve Chairman Jerome Powell’s remarks on the 21st that he could take an aggressive stance on further interest rate hikes.

There are also claims that Powell’s comments on the possibility of interest rate hikes resolved uncertainty, leading to the rise in Bitcoin prices. Jeff Dorman, Chief Investment Officer (CIO) of digital asset management company Arca, said, "Investors dislike uncertainty more than bad outcomes," adding, "Cryptocurrency investors have priced in the upcoming three-year tightening cycle."

Bitcoin trading volume is also on the rise. According to CoinMarketCap, the 24-hour Bitcoin trading volume was $31,992,737,199 (approximately 38.839 trillion KRW), up 22.7% compared to the previous day.

The Digital Asset Fear & Greed Index by Dunamu, operator of the cryptocurrency exchange Upbit, recorded 55.4, indicating a 'neutral' stage. Compared to 50.27 (neutral) on the 16th of this month, a week ago, it is 5.12 points higher. Dunamu’s Digital Asset Fear & 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 by market participants, while moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.