[Bitcoin Now] Nasdaq Drops and 3AC Default ↓... "Volatile Market to Continue"

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] The price of Bitcoin, the leading cryptocurrency, is slightly declining amid the U.S. stock market's downward close and news of a default by a cryptocurrency investment hedge fund.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:15 a.m. on the 28th, Bitcoin's price was recorded at $20,637 (approximately 26.55 million KRW), down 2.17% from the previous day.

Bitcoin's price is falling due to the decline in the Nasdaq index, which is centered on tech stocks showing synchronization. On the 27th (local time), the Nasdaq index closed at 11,524.55, down 83.07 points (0.72%) from the previous session. The Standard & Poor's (S&P) 500 index fell 11.63 points (0.30%) to 3,900.11, and the Dow Jones Industrial Average dropped 62.42 points (0.20%) to 31,438.26.

The news of a default by the cryptocurrency investment hedge fund Three Arrows Capital (3AC) also appears to have had an impact. U.S. economic media CNBC reported that 3AC failed to repay a $670 million (approximately 861.2 billion KRW) loan due by the 27th. 3AC has faced liquidity issues following the crash of TerraUSD (UST) Classic and Luna Classic.

Major altcoin prices are also on a downward trend. At the same time, Ethereum is trading at $1,173 (approximately 1.51 million KRW), down 3.31% from the previous day, and Solana is at $37.19 (approximately 47,800 KRW), down 6.07%.

Experts predict that cryptocurrency price volatility will continue for the time being. Hany Rashwan, CEO of derivatives issuer 21Shares, pointed out the recent sharp decline and rebound in the New York stock market, forecasting, "Investors will enter a period of bottom searching not only in the stock market but also in the cryptocurrency market over the next few months."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 28.27 on the day, indicating a 'Fear' stage. This is 1.36 points higher than 26.91 (Fear) a week ago. 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 indicates a fear of asset decline leading to market exits and a chain reaction of price drops.