[Bitcoin Now] Falls Amid Additional Big Step and Recession Concerns... $34,000 'At Risk'

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are declining amid concerns over a possible additional big step (a 50 basis point hike in the benchmark interest rate at once) by the U.S. Federal Reserve (Fed) and fears of an economic recession.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:36 a.m. on the 9th, the price of Bitcoin was $34,107 (approximately 43.48 million KRW), down 2.66% from the previous day.

The cryptocurrency specialized media CoinDesk pointed out that cryptocurrency prices have recently fallen significantly due to additional interest rate hikes and recession concerns. Fed Chair Jerome Powell said in a separate press conference after the Federal Open Market Committee (FOMC) meeting, "There is a broad recognition within the committee that a 0.5 percentage point rate hike should be considered in the next couple of meetings."

Joe DiPascal, CEO of BitBull Capital, commented on the recent Bitcoin price movements, saying, "Bitcoin has continued to be pressured by macroeconomic stress and overall market sentiment," and "The FOMC caused volatility, but the upward trend did not last long." However, he advised that there is still room for a rebound. He predicted, "As monetary policy tightening continues, Bitcoin is expected to decline further but will not fall below the $25,000 to $30,000 range," adding, "With about $1.3 billion worth of May options expiration approaching on Bitcoin futures exchanges, a rebound cannot be ruled out soon."

Altcoins are also falling together. At the same time, Ethereum is trading at $2,524 (approximately 3.21 million KRW), down 3.43% from the previous day; Luna is down 0.86% at $63.12 (approximately 80,400 KRW). Solana is also down 2.44% from the previous day, trading at $76.17 (approximately 97,060 KRW).

Meanwhile, the digital asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 38.73 on the day, indicating a 'Fear' stage. Compared to 36.39 (Neutral) the previous day, it rose by 2.34 points. 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, whereas moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.