[Bitcoin Now] Stagnant at $29,000 Despite US Stock Market Rise... "Expected to Remain Sideways for a While"

[Image source=Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are hovering around the $29,000 level. Since the Luna crash incident, prices have struggled to rebound, and analysts predict this trend will continue until economic conditions improve.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:05 AM on the 26th, Bitcoin was priced at $29,687 (approximately 37.6 million KRW), down 0.05% from the previous day. Bitcoin fell below $30,000 on the 24th but has since slightly increased, remaining around the $29,000 level.

Cryptocurrency specialized media CoinDesk reported experts' analysis that Bitcoin will move between $28,500 and $30,500 until issues such as inflation and worsening economic indicators are resolved. The Bitcoin price, which dropped due to the TerraUSD (UST) and Luna crash, is expected to remain sideways for the time being.

Michael Sonnenshein, CEO of cryptocurrency investment firm Grayscale, stated, "Volatility and selling pressure in cryptocurrency prices have affected other investment instruments," adding, "It is difficult to find factors for a rebound in the recent downtrend." However, he also expressed a positive outlook, saying, "We will soon find a basis for a rebound."

The Nasdaq index, which shows a correlation with Bitcoin prices, closed higher. On the 25th (local time), the Nasdaq index closed at 11,434.74, up 170.29 points (1.51%) from the previous trading day. The Dow Jones Industrial Average rose 91.66 points (0.60%) to 32,120.28, and the large-cap focused S&P 500 index increased by 37.25 points (0.95%) to 3,978.73.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, operator of the domestic cryptocurrency exchange Upbit, recorded a fear level of 33.13 on the day. This is up 1.22 from 31.92 (fear) the previous day and up 3.49 from 29.65 (fear) a week ago. Dunamu’s Digital Asset Fear & Greed Index is divided into ‘Extreme Fear (0?20)’, ‘Fear (20?40)’, ‘Neutral (40?60)’, ‘Greed (60?80)’, and ‘Extreme Greed (80?100)’. A greed direction indicates increased interest in buying by market participants, whereas a fear direction reflects a fear of asset decline, leading to market exits and a chain reaction of price drops.