[Bitcoin Now] Rising on Strong US Retail Sales and Stock Market Rally... Investor Sentiment Revives

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the US retail sales performance for June came out positively and the US stock market closed higher, the price of the leading cryptocurrency Bitcoin is also on the rise.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:20 PM on the 16th, the price of Bitcoin was recorded at $20,715 (approximately 27.45 million KRW), up 0.99% from the previous day.

The Bitcoin price was influenced by the rise in the US stock market, which showed a synchronization phenomenon. On the 15th (local time), the tech-heavy Nasdaq index closed at 11,452.42, up 201.24 points (1.79%). The Dow Jones Industrial Average rose 658.09 points (2.15%) to 31,288.26, and the large-cap S&P 500 index increased 72.78 points (1.92%) to 3,863.16.

The US stock market recorded an upward trend as investment sentiment improved on news that consumer spending had returned to an increasing trend. According to the US Department of Commerce, June retail sales, seasonally adjusted, rose 1.0% from the previous month to $680.6 billion, marking a return to growth after one month.

However, despite the rise on this day, the outlook for Bitcoin price increases is not very optimistic. Craig Erlam, senior market analyst at global investment firm OANDA, explained that the recent rise in Bitcoin prices does not necessarily indicate further recovery. He added, "Considering the broad risk environment and bankruptcy news in the industry, the short-term outlook remains concerning."

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose 6 points from the previous day to 21 points (extreme fear) on this day. Alternative's Fear & Greed Index means that a score closer to 0 indicates pessimistic fear about investing, while a score near 100 indicates optimism.