[Bitcoin Now] 'Ommuk Dalsak' Box Confinement... Trading Volume Lowest in a Month

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the leading cryptocurrency that had been on the rise, is now stuck in the $23,000 range, causing trading volume to decline as well.

According to cryptocurrency market tracking site CoinGecko on the 8th, Bitcoin's daily trading volume the previous day was recorded at $14.43969 billion (approximately 18.7499 trillion KRW), marking the lowest level in over a month. Previously, the lowest trading volume was $13.97697 billion on the 4th of last month, and before that, $13.39523 billion on June 6.

The reason Bitcoin's trading volume dropped to the lowest level in a month is that the price recovery was limited from further gains. On the 27th of last month, the price surged from the $20,000 range to the $22,000 range in one day. On the 31st, it climbed to the $24,000 range, showing an upward trend and sparking expectations of entering a bull market. Mark Yusko, CEO of Morgan Creek Capital, said, "Bitcoin is significantly undervalued, and its fair value is $30,000," adding, "The period of uncertainty is over, and recovery has begun." However, since then, Bitcoin's price has been hovering between $22,000 and $23,000 for over nine days.

The current market seems to react more strongly to negative news than positive developments. On the 4th (local time), U.S. cryptocurrency exchange Coinbase announced a partnership with BlackRock, the world's largest asset management firm. With BlackRock managing assets worth 1 quadrillion KRW joining hands with Coinbase, some analysts suggested this could change the cryptocurrency market's dynamics. After the announcement, Coinbase's stock price rose by more than 30% intraday. However, Bitcoin's price fluctuated around the $23,000 level on the 4th and 5th. Meanwhile, with U.S. July nonfarm payrolls increasing at the fastest pace in five months and employment data exceeding expectations, concerns about the Federal Reserve's aggressive tightening emerged, causing Bitcoin's price to decline.

As Bitcoin's price remains in a box range, investor sentiment has not escaped the fear stage. According to cryptocurrency data provider Alternative, the Fear & Greed Index remained at 30 points (fear) on the day, unchanged from the previous day. This is a 3-point drop from 33 points (fear) recorded a week earlier on the 1st. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.

Meanwhile, according to global cryptocurrency market tracking site CoinMarketCap, as of 11:04 a.m. on the day, Bitcoin was trading at $23,204 (approximately 30.25 million KRW). This is a 1.20% increase from the previous day but remains stuck in the $23,000 range ahead of the U.S. July Consumer Price Index (CPI) announcement scheduled for the 10th. The market expects the July CPI to rise 8.7?8.9% year-on-year, lower than June's 9.1% but still at a high level. Therefore, there is speculation that the Fed may implement another giant step (a 0.75 percentage point interest rate hike).