[Bitcoin Now] Slight Rise Above $38,000... Investor Sentiment Also Up

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of the representative cryptocurrency Bitcoin is showing a slight upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:41 AM on the 3rd, the price of Bitcoin was $38,376 (approximately 48.54 million KRW), up 0.12% compared to the previous day.

Bitcoin prices are showing a slight rise as the US Nasdaq index, which tends to move in sync, closed higher. On the 2nd (local time), the Nasdaq index, centered on technology stocks, closed at 12,536.02, up 201.38 points (1.63%). The Dow Jones Industrial Average rose 84.29 points (0.26%) to 33,061.50, and the large-cap S&P 500 index closed at 4,155.38, up 23.45 points (0.57%). Buying momentum continued mainly in technology stocks, resulting in an upward trend.

Additionally, the historical tendency of Bitcoin prices to rise in May appears to have an influence. The average increase rate of Bitcoin in May is known to reach 27%. However, this year, due to the impact of interest rate hikes and other factors, a different pattern may emerge. Alex Kuptsikevich, Senior Market Analyst at FxPro, predicted that Bitcoin prices in May this year would move between $32,000 and $48,000. The US Federal Reserve (Fed) is expected to decide on a so-called 'big step' by raising the benchmark interest rate by 0.5 percentage points at once at the May Federal Open Market Committee (FOMC) meeting.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 46.75 on the day, indicating a 'neutral' stage. This is a 0.2 increase compared to 46.55 (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.