[Bitcoin Now] Psychological Support Level Recovers to $20,000... Investor Sentiment Still 'Fear'

[Image source=Yonhap News]

[Asia Economy Reporter Myung-Hwan Lee] The price of the leading cryptocurrency Bitcoin has recovered the psychological barrier of $20,000.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:39 a.m. on the 5th, the price of Bitcoin was recorded at $20,194 (approximately 26.22 million KRW), up 5.26% from the previous day.

The Bitcoin price showed an upward trend due to continued bargain buying amid perceptions that it had approached the bottom. Additionally, the possibility of a ceasefire in the Ukraine war also seemed to have an impact. CNN reported that Russian forces have occupied the Luhansk region in eastern Ukraine, and since Russian President Vladimir Putin's goal of making the Donbas region Russian territory is nearing, there is a possibility that Russia may declare a ceasefire.

However, despite this upward trend, the crisis in the cryptocurrency market still remains. Cryptocurrency specialized media CoinDesk reported that negative factors in the cryptocurrency industry continue. Last month, following the bankruptcy filing of the cryptocurrency hedge fund Three Arrows Capital (3AC), the financial platform lender Celsius also filed for bankruptcy protection. The financial platform CoinLoan restricted withdrawal amounts, and Singapore-based cryptocurrency lender Vauld announced plans to apply for a moratorium, suspending all withdrawals, transactions, and deposits.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 33.97 on the day, indicating a 'Fear' stage. This is 9.37 points higher than 24.60 (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 chain reaction of price declines as participants exit the market due to fear of asset depreciation.