[Bitcoin Now] Trading Volume Decreases Despite Price Rise... Investor Sentiment Shifts from 'Extreme Fear' to 'Fear'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] In the context of the representative cryptocurrency Bitcoin showing an upward trend this month, the average daily trading volume has slightly decreased compared to last month.

According to an analysis of data from CoinMarketCap, a global cryptocurrency market tracking site, the average daily Bitcoin trading volume from the 1st to the 24th of this month was $29.32595 billion (approximately 38.4668 trillion KRW). This represents a 4.78% decrease from last month's average daily trading volume of $30.79797 billion (approximately 40.3976 trillion KRW).

Although the average daily Bitcoin trading volume in July has decreased compared to last month, the price has shown an upward trend this month, rising more than 8% in the past week. Last month, the price fell from around $31,000 (approximately 40.68 million KRW) to the $17,000 range. However, this month, it has been on an upward trajectory due to factors such as the rising U.S. stock market, climbing from the $19,000 range to the $23,000 range. In May, the average daily Bitcoin trading volume increased to $35.14265 billion due to panic selling triggered by the Luna Classic incident but has since declined. This is interpreted as a result of panic selling caused by the sharp drop in Bitcoin prices following the Luna Classic incident.

However, Bitcoin prices are declining ahead of the U.S. Federal Open Market Committee (FOMC) meeting scheduled for the 27th. As of 9:39 a.m. on the day, Bitcoin was trading at $22,407 (approximately 29.41 million KRW), down 0.79%. The U.S. Federal Reserve (Fed) is expected to implement a giant step by raising the benchmark interest rate by 0.75 percentage points at the FOMC, which is contributing to the downward trend.

Meanwhile, cryptocurrency investor sentiment improved from 'extreme fear' last month to 'fear.' According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, was 30 points (fear) on the day, down 1 point from the previous day. Compared to 14 points (extreme fear) one month ago, this is an increase of 16 points. Alternative's Fear & Greed Index indicates that a score closer to 0 points reflects pessimistic fear about investing, while a score near 100 points indicates optimism.