[Bitcoin Now] Bitcoin Rises Over 2% Amid US Stock Market Rebound... Negative Factors Persist

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As concerns about inflation ease and the US stock market rises, the price of Bitcoin, the representative cryptocurrency, is also showing an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 4:07 PM on the 25th, the price of Bitcoin was recorded at $21,338 (approximately 27.65 million KRW), up 2.22% from the previous day.

On this day, Bitcoin's price showed an upward trend as the US stock market, which exhibits synchronization phenomena, closed higher. On the 24th (local time), the Nasdaq index, centered on technology stocks, rose 375.43 points (3.34%) to close at 11,607.62, and the Dow Jones Industrial Average closed at 31,500.68, up 823.32 points (2.68%) from the previous session. The S&P 500 index, focused on large-cap stocks, recorded 3,911.74, up 116.01 points (3.06%).

However, despite the upward trend, the outlook is not bright. First, there are claims that the rise in the US stock market is temporary. Chris Senyak of Wolfe Research described it as a "bear market rally due to oversold conditions." Craig Erlam of global investment firm OANDA explained, "Despite resilience, this weekend could be another test for cryptocurrencies."

Additionally, the cryptocurrency platform Celsius preparing to file for bankruptcy is also a negative factor. Cryptocurrency specialized media CoinDesk reported that Goldman Sachs plans to raise $2 billion (2.592 trillion KRW) from investors to purchase Celsius's distressed assets. Celsius is said to have attracted 1.7 million depositors by promising interest rates in the 18% range for cryptocurrency deposits.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as an index, rose 3 points from the previous day to 14 points (extreme fear) on this day. Alternative's Fear & Greed Index means that the closer to 0 points, the more pessimistic fear investors feel about investing, and the closer to 100 points, the more optimistic they are.