[Bitcoin Now] US Stock Market Rebounds, Bitcoin Rises... Recovers to $40,000 Range

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the U.S. stock market closed higher, the price of the leading cryptocurrency Bitcoin is showing an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:56 a.m. on the 26th, the price of Bitcoin was $40,534, up 4.24% from the previous day (approximately 50.67 million KRW).

The Bitcoin price rose as the Nasdaq index, centered on technology stocks that show synchronization, increased. On the 25th (local time), the Nasdaq index closed at 13,004.85, up 165.56 points (1.29%) at the New York Stock Exchange (NYSE). Additionally, the Dow Jones Industrial Average rose 238.06 points (0.70%) to 34,049.46, and the S&P 500 index, which focuses on large-cap stocks, recorded 4,296.12, up 24.34 points (0.57%).

Despite this upward trend, concerns about price declines remain. According to cryptocurrency specialized media CoinDesk, Daniel Koo, a researcher at blockchain data firm Nansen, explained, "Inflation, the Ukraine situation, and tightening policies are factors causing recent volatility," adding, "These factors have simultaneously affected not only the stock market but also the cryptocurrency market." He continued, "Due to uncertainty and short-term bearish outlooks, many investors are shifting toward stablecoins." Stablecoins refer to cryptocurrencies pegged to maintain a fixed value with fiat currencies such as the dollar.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 48.43 on the day, indicating a 'neutral' stage. This is a 0.13 increase compared to 48.29 (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, whereas moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.