[Bitcoin Now] Rising Trend Despite 'Luna Crash' Incident... Recovery to $30,000 Range

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, which had plummeted due to the collapse of the cryptocurrency Luna, showed an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:30 a.m. on the 16th, the price of Bitcoin was $30,469, up 2.46% from the previous day (approximately 39.08 million KRW).

Bitcoin prices had sharply dropped following Luna’s 99.99% crash but showed an upward trend on this day. Earlier, on the 12th of this month, it had fallen to as low as $26,350. Cryptocurrency specialized media CoinDesk analyzed that the rise in the U.S. stock market, which shows a synchronization phenomenon, acted as a positive factor for the cryptocurrency market. On the 13th (local time), the Nasdaq index, centered on technology stocks, closed at 11,805.00, up 434.04 points (3.82%). The Dow Jones Industrial Average rose 466.36 points (1.47%) to 32,196.66, and the large-cap S&P 500 index closed at 4,023.89, up 93.81 points (2.39%).

Earlier, as the value of TerraUSD (UST) declined, the price of its sister coin Luna began to plummet. UST is a stablecoin designed to peg its value at $1 per coin. Most of the assets backing UST’s value are Luna, but as UST’s price fell below $1, Luna’s price also plunged, creating a vicious cycle of decline for both UST and Luna.

Joe DiPascal, CEO of BitBull Capital, said, "Bitcoin actually faced downward pressure below $30,000 but did not fall below $25,000." He added, "The short-term rebound is still valid, but additional buying activity is needed for a proper turnaround," and explained, "If further measures by the U.S. Federal Reserve (Fed) due to inflation come to the forefront, additional volatility may appear next month."

Suzanna Streeter, senior researcher at investment firm Hargreaves Lansdown, said, "Investors are concerned about inflation and supply worries that pushed Luna’s price below 1 cent, as well as the UST crash," and pointed out, "This collapse shows that approaching cryptocurrency as speculation is very risky and is not suitable for investors without spare funds."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 32.59 on this day, indicating a 'Fear' stage. Compared to 36.39 on the 8th of this month, a week earlier, it dropped by 3.80 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, while moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.