[Bitcoin Now] Uptrend Continues Amid Inflation Slowdown Expectations... Settling in the $24,000 Range

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are on the rise amid expectations of a slowdown in inflation growth.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 3:24 PM on the 15th, Bitcoin was priced at $24,574 (approximately 32.09 million KRW), up 0.77% from the previous day. Around 12:19 PM on the same day, Bitcoin briefly surpassed the $25,000 mark but gave back some of the gains.

Bitcoin prices rose influenced by indicators showing a weakening inflation trend. Both the US July Consumer Price Index (CPI) and Producer Price Index (PPI) growth rates slowed, and the July Import Price Index fell 1.4% compared to the previous month. Thanks to these indicators, expectations have emerged that the Federal Reserve's rate hike intensity will weaken. Cryptocurrency specialized media CoinDesk evaluated, "Investors are showing an optimistic attitude toward recent economic indicators that suggest inflation is decreasing and the possibility of a recession is lowering."

Ethereum prices declined ahead of its upgrade. At the same time, Ethereum traded at $1,970 (approximately 2.57 million KRW), down 1.20% from the previous day. However, Ethereum prices have risen more than 14% over the past week. This is because the Merge upgrade, which will switch Ethereum's creation method from the existing Proof of Work (PoW) mining process using computer calculations to the Proof of Stake (PoS) method where coins are generated at a certain rate when held, is scheduled for September 19. It is reported that the third and final testnet, Goerli, preceding the Merge upgrade, has been completed. Previously, testnets such as Ropsten and Sepolia were also completed.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index representing investor sentiment was recorded at 45 points (fear), down 2 points from the previous day. Alternative's Fear & Greed Index means that the closer to 0 points, the more pessimistic fear investors feel about investing, and the closer to 100 points, the more optimistic they are.