[Bitcoin Now] Nasdaq Weakens, Turns Down in One Day... Ethereum on the Rise

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices have turned downward within a day and are trading below $24,000.

According to the global cryptocurrency market tracking site CoinMarketCap as of 10:49 AM on the 12th, Bitcoin was priced at $23,925 (approximately 31.22 million KRW), down 1.82% from the previous day. Bitcoin had shown an upward trend the day before, briefly surging to the $24,800 range due to a slowdown in the rise of the U.S. Consumer Price Index (CPI).

The decline in Bitcoin prices appears to be due to the fall in the U.S. Nasdaq index, which tends to move in sync. On the 11th (local time), the Nasdaq index, centered on technology stocks, closed at 12,779.91, down 0.58% (74.89 points) from the previous trading day. The Dow Jones Industrial Average rose 0.08% (27.16 points) to 33,336.67, while the S&P 500 index showed mixed results, closing down 0.07% (2.97 points) at 4,207.27.

However, Ethereum, a leading altcoin, is rising due to factors such as its protocol transition. At the same time, Ethereum was up 0.59% from the previous day, trading at $1,886 (approximately 2.46 million KRW). Ethereum plans to implement the Merge upgrade, which transitions to a proof-of-stake (PoS) system generating a certain percentage of coins, on the 19th of next month. Dan Wiskopf, manager at Amplify, a U.S.-based exchange-traded fund (ETF) operator, expressed optimism about Ethereum.

Despite the slowdown in Bitcoin's price increase, investor sentiment remains strong. The digital asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 61.74 on the day, indicating a 'Greed' stage. This is a decrease of 1.13 from 62.87 (Greed) 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)'. The greed direction indicates increased interest in buying by market participants, whereas moving toward fear indicates a fear of asset decline, leading to market exits and a chain reaction of price drops.