[Bitcoin Now] Price Rise Supported by Low-Price Buying and Giant Step Support Remarks

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the representative cryptocurrency, is showing a slight upward trend due to bargain buying.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:18 AM on the 15th, the price of Bitcoin was recorded at $20,407 (approximately 27.04 million KRW), up 0.72% from the previous day.

Bitcoin's price showed an upward trend despite the U.S. June Consumer Price Index (CPI), announced on the 13th (local time), soaring 9.1% compared to the same month last year. Although the price briefly fell below the $19,000 level after the announcement, the resolution of uncertainty and continued bargain buying led to an upward trend.

Furthermore, the fact that the U.S. June CPI recorded the largest increase since 1981 and exceeded experts' forecast of 8.8% seems to have eased concerns about the possibility of a 'jumbo step' interest rate hike of 1.0 percentage point at once. On the 14th (local time), Christopher Waller, a Federal Reserve (Fed) Board member, expressed support for a 'giant step' of raising the benchmark interest rate by 0.75 percentage points at the July Federal Open Market Committee (FOMC) regular meeting. While leaving open the possibility of a 1.0 percentage point increase depending on data, Waller's hawkish remarks are interpreted as having driven the price increase.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 37.39 on the day, indicating a 'Fear' stage. This is a decrease of 1.24 from 38.63 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 among market participants, whereas moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.