[Bitcoin Now] Surges Past $23,000 Amid US Stock Market Rally... Related Stocks Also 'Buzzing'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are gaining momentum. The rise in the US stock market and anticipation ahead of the Ethereum 2.0 launch appear to be attracting investment sentiment among cryptocurrency investors.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:07 AM on the 20th, Bitcoin was priced at $23,076 (approximately 30.15 million KRW), up 2.81% from the previous day. This marks an increase from the early $22,000 range the day before, pushing Bitcoin back above the 30 million KRW level.

Bitcoin prices seem to be influenced by the significant rise in the US stock market the previous day. On the 19th (local time), the US stock market closed higher as major companies reported earnings that exceeded expectations. The Nasdaq index, which is tech-stock heavy and shows a correlation with Bitcoin prices, closed at 11,713.15, up 3.11% (353.10 points) from the previous trading day. The Dow Jones Industrial Average rose 2.43% (754.44 points) to 31,827.05, and the Standard & Poor's (S&P) 500 index closed at 3,936.69, up 2.76% (105.84 points).

Expectations for Ethereum 2.0 also seem to have contributed. Cryptocurrency specialized media CoinDesk reported, "Cryptocurrency prices rose due to the renewed momentum of the long-anticipated Ethereum merge." However, at the same time, Ethereum prices slightly declined, falling 2.88% to $1,524 (approximately 1.99 million KRW).

There are also forecasts that the price rally may continue in the short term. Yoon Chang-bae, a researcher at KB Securities, analyzed, "The Federal Reserve's expected slowdown in interest rate hikes and the upcoming Ethereum 2.0 update are easing risk-averse sentiment." Noah Hammond, CEO of asset management firm AdvisorShares, noted, "Bitcoin prices seem to be heading toward a new peak."

As Bitcoin prices have risen over three days, related stocks listed on domestic and international stock markets have also been affected. On the previous trading day, the 19th, cryptocurrency-related stocks such as T Scientific (8.37%), Wizit (6.17%), and Woori Technology Investment (0.54%) closed higher in the domestic stock market.

The US stock market also saw gains centered on cryptocurrency-related stocks. On the 19th (local time), Marathon Digital Holdings (32.17%), Galaxy Digital (13.33%), Riot Blockchain (12.04%), Coinbase (12.20%), and MicroStrategy (18.41%) all closed higher.

Meanwhile, the Digital Asset Fear & Greed Index operated by Dunamu, which runs the domestic cryptocurrency exchange Upbit, recorded a 'neutral' level at 64.48 on the day. This is a decrease of 7.42 from 71.90 (greed) the previous day. Compared to 33.71 (fear) on the 13th of this month, a week earlier, it rose by 30.77. 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 greed direction indicates increased buying interest among market participants, while a fear direction reflects a fear of asset decline, leading to market exits and a chain reaction of price drops.