[Bitcoin Now] US Stock Market 'Tailwind' Boosts Uptrend... Investor Sentiment Also Rises

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the US stock market rises with the start of the corporate earnings season for the first quarter of this year, the price of the representative cryptocurrency Bitcoin is also showing an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:20 AM on the 14th, the price of Bitcoin was $41,257 (approximately 50.52 million KRW), up 3.48% from the previous day.

The price of Bitcoin rose as the US stock market climbed. On the 13th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average rose 344.23 points (1.01%) from the previous close to 34,564.59. The tech-heavy Nasdaq index closed at 13,643.59, up 272.02 points (2.03%), and the large-cap S&P 500 index ended at 4,446.59, up 49.14 points (1.12%).

Cryptocurrency specialized media CoinDesk reported, "As the US stock market opened higher, the upward momentum of Bitcoin’s price increased," adding, "The correlation between Bitcoin and the stock market remains high, so investor sentiment in the stock market is important." Edward Moya, senior market analyst at global investment firm OANDA, explained, "Bitcoin will continue to follow the US stock market," and noted, "Optimism is growing that US consumer purchasing power remains strong." He added, "Considering geopolitical issues caused by the Ukraine situation and US inflation risks, the stock market’s rise during the earnings season may be limited, so Bitcoin’s price is likely to trade between $38,000 and $48,000."

Investor sentiment is also recovering. The Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 48.66 on the day, indicating a 'neutral' stage. This is a 0.15 increase compared to 48.5 (neutral) the previous day. 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 among market participants, while moving toward fear indicates a fear of asset decline, causing market exits and a chain reaction of price drops.