[Bitcoin Now] Aftershocks of the Luna Incident Continue... Investor Sentiment at 'Extreme Fear'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices have been showing a continuous downward trend due to the Luna incident.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:13 AM on the 17th, the price of Bitcoin was $30,003 (approximately 38.33 million KRW), down 3.07% from the previous day.

Bitcoin prices have been declining amid increased volatility caused by the Luna crash. Earlier, as the value of TerraUSD (UST) fell, the price of its sister coin Luna began to plummet. The crash in Luna's price led to declines in other cryptocurrencies including Bitcoin. 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 dropped below $1, Luna's price also plunged, creating a vicious cycle of declines for both UST and Luna.

Cryptocurrency specialized media CoinDesk explained, "Generally, in a bear market, altcoins decline more sharply than Bitcoin," adding, "This broad risk-averse environment could sustain the short-term downward trend in Bitcoin prices." Additionally, CoinDesk noted that Bitcoin prices have shown a bearish trend for seven consecutive weeks for the first time.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investment sentiment toward cryptocurrencies, fell by 6 points from the previous day to 8 points (extreme fear) on the same day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating optimism.