[Bitcoin Now] Nasdaq Plunges Over 4%... Drops to $28,000 Range

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the US stock market plunged, the price of the leading cryptocurrency Bitcoin also showed weakness.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:37 AM on the 19th, the price of Bitcoin was $28,925 (approximately 36.85 million KRW), down 4.72% from the previous day.

The Bitcoin price declined as the US stock market, which shows synchronization phenomena, especially the tech-heavy Nasdaq index, dropped more than 4%. On the 18th (local time), the Nasdaq index closed at 11,418.15, down 566.37 points (4.73%). The Dow Jones Industrial Average recorded its largest drop since June 2020, falling 1,164.52 points (3.57%) to 31,490.07, and the large-cap S&P 500 index closed at 3,923.68, down 165.17 points (4.04%).

The US stock market was affected by Target's earnings falling short of expectations following Walmart. Due to inflation and supply chain disruptions, retail companies faced increased cost burdens, leading to massive sell-offs in the market. Target and Walmart fell more than 24% and 6%, respectively. Macy's and Kohl's also dropped more than 10%.

Cryptocurrency specialized media CoinDesk reported that Bitcoin prices showed weakness while tracking the US stock market. It added that the decline in altcoin prices was greater than Bitcoin’s, indicating a weakening of investors' risk appetite. Altcoins are generally known to be more volatile than Bitcoin; at the same time, Ethereum, the leading altcoin, fell 6.85%, while Ripple and Solana dropped 6.04% and 10.71%, respectively.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded a 'Fear' level at 25.72 on the day. This is an increase of 4.02 compared to the previous day's 21.70 (Fear). 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 reflects a fear of asset decline, causing market exits and a chain reaction of price drops.