[Bitcoin Now] Returns Gains from $21,000 Range... Investor Sentiment 'Neutral'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, which surpassed the $21,000 level last week, has given up some of its gains and fallen back to the $20,000 range.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:44 a.m. on the 18th, Bitcoin was priced at $20,960 (approximately 27.64 million KRW), down 1.10% from the previous day.

The decline in Bitcoin’s price appears to be due to concerns over central banks around the world raising benchmark interest rates. Cryptocurrency specialized media CoinDesk explained, "Market observers expect Bitcoin to continue trading between $18,000 and $22,000 ? a range it has maintained for a month ? until investors receive clear signals that central banks can ease inflation without triggering a global recession."

On the 17th (local time), The Wall Street Journal (WSJ) reported that the U.S. Federal Reserve (Fed) is preparing for a giant step. As the U.S. Consumer Price Index (CPI) increase in June exceeded 9%, market bets on a 1.0 percentage point rate hike have risen, but there is a consensus that such a move would be excessive, leading to increased expectations for a giant step.

Joe DiPascal, CEO of BitBull Capital, said, "Although Bitcoin has shown positive signs, from a broader perspective it is moving within a range and struggling to break through the resistance level of $22,000."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 44.28 on the day, indicating a 'neutral' stage. This is an increase of 1.38 from 42.90 (neutral) the previous day. Furthermore, it rose 14.76 from 29.52 (fear) on the 11th of this month, a week ago. Dunamu’s Digital Asset Fear & Greed Index is divided into stages: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. A movement toward greed indicates increased buying interest among market participants, while a shift toward fear reflects growing fear of asset decline, causing market exits and a chain reaction of price drops.