[Asia Economy Reporter Lee Jung-yoon] As signals of a slowdown in inflation growth emerge and Bitcoin prices settle in the $24,000 range, cryptocurrency prices are showing an upward trend, reviving investor sentiment.
According to cryptocurrency data provider Alternative on the 14th, the Fear & Greed Index, which indicates investor sentiment, was recorded at 47 points (neutral). This is the highest level since April 6, when it was 48 points. It rose by 1 point from 46 points (fear) the previous day and increased by 17 points compared to 30 points (fear) on the 7th of this month, a week ago. Alternative’s Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investing, to 100 points, indicating optimism.
Domestically, Dunamu, which operates the cryptocurrency exchange Upbit, reported its Digital Asset Fear & Greed Index rising to 62.22 (greed). Although this is a 0.90 decrease from the previous day, it is 7.54 points higher than 54.68 (neutral) on the 7th of this month, a week ago. Furthermore, it increased by 21.05 points compared to 41.17 (neutral) on the 15th of last month, one month ago. 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)'. Movement toward Extreme Fear indicates declining investor sentiment, while the opposite indicates a revival of investor sentiment.
Investor sentiment is recovering as signals of a slowdown in the US inflation growth rate have been detected, reviving risk appetite. Both the US Consumer Price Index (CPI) and Producer Price Index (PPI) growth rates slowed in July, and import prices in July fell for the first time since December last year. With easing inflationary pressures, the US stock market, which tends to move in sync, is showing an upward trend, and expectations are emerging that the Federal Reserve’s rate hike intensity will weaken.
Bitcoin prices rose from the $23,000 range to the $24,000 range the previous day due to signals of easing inflation growth. Additionally, Ethereum, the leading altcoin, is trading in the $1,900 range, having briefly recovered to the $2,000 range for the first time since May the previous day. Ethereum is preparing for the Merge upgrade scheduled for September 19, which will transition from the Proof of Work (PoW) mining method, which uses computer calculations to mine cryptocurrency, to the Proof of Stake (PoS) method, where holders generate a certain proportion of coins.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
