[Bitcoin Now] Investor Sentiment Recovers, Highest Price in Over a Month... Settles Above $22,000

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Myunghwan] Bitcoin prices continued their upward trend following the previous day, settling at the $22,000 level for the first time in about a month. This is attributed to improved investor sentiment after major global stock markets closed higher the day before.

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 10:45 AM on the 19th, Bitcoin was priced at $22,144 (approximately 29.15 million KRW), up 7.19% from the previous day. This is the highest level in about a month since May 16, approaching the 30 million KRW mark in Korean won terms. The leading altcoin, Ethereum, showed an even stronger rise. At the same time, Ethereum was recorded at $1,535 (approximately 2.02 million KRW), up 13.52% from the previous day.

Bitcoin prices have been rising as major stock markets in Europe and Asia closed higher. Economic media CNBC reported that the cryptocurrency market showed signs of recovery, hopeful that the recent weeks of sharp declines were nearing an end. It analyzed that Bitcoin's strength was influenced by the rebound in European and Asian stock markets as well as the rise in U.S. stock futures.

However, experts pointed out that considering recession forecasts and other factors, the optimistic investor sentiment reflected in the Bitcoin price increase may be excessive. Hassan Basiri, Vice President of Arca, a cryptocurrency investment firm, warned, "There may be short-term strength for about one to two weeks, but investors should be cautious as economic headwinds remain. The capital flowing into the cryptocurrency market is not new; it is merely existing market participants trading among themselves."

Meanwhile, the Digital Asset Fear and Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 65.10 on the day, indicating a 'neutral' stage. This is a decrease of 1.58 from 66.68 (greed) the previous day. Compared to 27.21 (fear) on the 12th of this month, a week ago, it rose by 37.89. Dunamu's Digital Asset Fear and 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)'. A greed direction indicates increased interest in buying by market participants, whereas a fear direction leads to market exits due to fear of asset declines, causing a chain reaction of price drops.