[Bitcoin Now] US Stock Market Rises, Bitcoin Gains... Cryptocurrency Brokerage Files for Bankruptcy Protection

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the US stock market closed higher, the price of the representative cryptocurrency Bitcoin is also showing an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:14 AM on the 7th, the price of Bitcoin was recorded at $20,474 (approximately 26.76 million KRW), up 1.21% from the previous day.

The price of Bitcoin is rising as the US stock market, which shows a synchronization phenomenon, climbs. On the 6th (local time), the tech-heavy Nasdaq index rose 39.61 points (0.35%) to close at 11,361.85. The Dow Jones Industrial Average increased by 69.86 points (0.23%) to 31,037.68, and the large-cap S&P 500 index closed at 3,845.08, up 13.69 points (0.36%). The US stock market rose slightly after the Federal Reserve (Fed) reaffirmed its intention to continue raising the benchmark interest rate at the June Federal Open Market Committee (FOMC) meeting to curb inflation. Additionally, the Fed's assertion that growth will continue moderately in the second quarter of this year also drove the upward trend.

However, negative factors remain as digital asset brokerage Voyager Digital filed for bankruptcy protection in the US Southern District Court of New York. According to US economic media CNBC and others, Voyager Digital lent $650 million to the cryptocurrency investment hedge fund Three Arrows Capital (3AC) but has not been repaid. 3AC recently faced a liquidity crisis as the cryptocurrency market entered a downturn and was declared bankrupt by the British Virgin Islands court on the 27th of last month.

Meanwhile, the Digital Asset Fear & Greed Index of Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 35.42 on the day, indicating a 'Fear' stage. This is a decrease of 0.67 from 36.09 (Fear) the previous day. 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.