[Bitcoin Now] Coin Investor Sentiment Revives as Price Rises 12% in a Week

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As cryptocurrency prices have risen, with Bitcoin prices increasing nearly 12% in a week, investor sentiment is also showing signs of recovery.

According to cryptocurrency data provider Alternative on the 9th, the Fear & Greed Index, which indicates investor sentiment, rose 4 points from the previous day to 24 points (extreme fear). Compared to 14 points last week and 11 points last month, this is an increase of 10 and 13 points respectively. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.

On the same day, Dunamu, which operates the domestic cryptocurrency exchange Upbit, reported its Digital Asset Fear & Greed Index at 38.93 (fear). Although this is a decrease of 2.52 points from 41.45 (neutral) the previous day, it is an increase of 13.62 points from 25.31 (fear) on the 2nd of this month, a week ago. Dunamu's Digital Asset Fear & Greed Index is classified into five levels: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. Moving toward extreme fear indicates declining investor sentiment, while the opposite indicates a revival of investor sentiment.

Investor sentiment has been recovering recently as the US stock market shows an upward trend and cryptocurrency prices rise. According to the global cryptocurrency market tracking site CoinMarketCap, as of 3:36 PM on the day, Bitcoin was priced at $21,525 (approximately 27.98 million KRW), up 11.97% from a week ago. Until the 6th of this month, Bitcoin prices fluctuated between $19,000 and $20,000, but from the previous day, it surpassed the $21,000 level.

Investor sentiment had been subdued due to the Luna Classic incident and recession concerns. Alternative's Fear & Greed Index dropped to 6 points on the 18th and 19th of last month. This followed the sharp decline in the price of TerraUSD (UST), a stablecoin designed to be pegged to $1, which caused the price of its sister coin Luna Classic to fall, triggering a major crash.