[Asia Economy Reporter Lee Jung-yoon] As the cryptocurrency market shows signs of recovery with Bitcoin prices rebounding, investor sentiment is also improving.
On the 31st, the Digital Asset Fear & Greed Index operated by Dunamu, which runs the domestic cryptocurrency exchange Upbit, was recorded at 61.89 (Greed). This is an increase of 7.89 from 54.00 (Neutral) on the 4th. It also rose 39.28 points compared to 22.61 (Fear) at the beginning of this month. The index had dropped to 5.96 (Extreme Fear) on the 13th of last month but climbed to 66.68 (Greed) on the 18th of this month. Dunamu’s Digital Asset Fear & Greed Index is classified into five levels: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The closer the index moves toward Extreme Fear, the weaker the investor sentiment, while the opposite indicates strengthening investor sentiment.
According to cryptocurrency data provider Alternative, the Fear & Greed Index representing investor sentiment was 39 points (Fear) on the same day. This is a 3-point decrease from 42 points (Fear) the previous day but a 9-point increase from 30 points (Fear) on the 24th, a week earlier. Additionally, it rose 28 points compared to 11 points (Extreme Fear) at the beginning of this month. Alternative’s Fear & Greed Index means that the closer the score is to 0, the more pessimistic and fearful investors are, while scores approaching 100 indicate optimism.
Investor sentiment has been recovering recently as Bitcoin prices have rebounded to the $23,000 range and cryptocurrency prices have shown an upward trend.
According to the global cryptocurrency market tracking site CoinMarketCap, Bitcoin’s price fell to $17,745 (approximately 23.19 million KRW) as of the 19th of last month but rose due to the upward trend in the U.S. stock market. As of 3:10 PM on the day, it was recorded at $23,732. Although it fell 0.20% compared to the previous day, it rose 4.38% compared to a week ago.
Also, the total cryptocurrency market capitalization, which was in the $840 billion (1,098 trillion KRW) range until early this month, has surpassed $1.1 trillion. As of 2 PM on the day, the total cryptocurrency market capitalization was recorded at $1.1023 trillion (approximately 1,441 trillion KRW).
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