[Bitcoin Now] Trading in a Range Around $21,000... Caution Ahead of FOMC Continues

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are fluctuating around the $21,000 level, remaining in a consolidation range.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:10 AM on the 27th, Bitcoin was recorded at $21,143 (approximately 27.77 million KRW), up 0.11% from the previous day.

Bitcoin prices are estimated to be stuck in a box range as investors remain cautious ahead of the U.S. Federal Reserve's Federal Open Market Committee (FOMC) meeting. Most experts expect the Fed to decide on a 0.75 percentage point increase in the benchmark interest rate at this FOMC. Paul Eisma of the cryptocurrency trading firm XBTO Group said, "Bitcoin prices are trapped in a box," adding, "We are waiting to see what decision the Fed will make."

At the same time, among altcoins, Ethereum, which has the highest market capitalization, is trading at $1,431 (approximately 1.88 million KRW), up 1.42% from the previous day. Cryptocurrency media outlet CoinDesk reported that Ethereum prices had surpassed $1,600 ahead of the transition to Ethereum 2.0 but plunged about 10% in a single day on the 25th. The outlet attributed the sharp decline to short-term investor fatigue but noted that Ethereum is expected to retest the intermediate support level of $1,000 in the next downturn.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, the operator of the domestic cryptocurrency exchange Upbit, recorded 41.47 on the day, indicating a 'neutral' stage. This is a slight decrease of 0.08 from 41.55 (neutral) the previous day. 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, whereas a fear direction reflects a fear of asset decline, leading to market exits and a chain reaction of price drops.