[Bitcoin Now] Falling Alone... "Cryptocurrency-Stock Market Decoupling Signal"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are showing a downward trend, hovering around the $24,000 level.

According to the global cryptocurrency market tracking site CoinMarketCap as of 11:12 AM on the 16th, Bitcoin was priced at $24,166 (approximately 31.64 million KRW), down 2.04% from the previous day.

Bitcoin prices are declining despite major U.S. stock indices closing higher. On the 15th (local time), the tech-heavy Nasdaq index closed at 13,128.05, up 0.62% (80.87 points) from the previous trading day. The S&P 500 index closed at 4,297.14, up 0.40% (16.99 points), and the Dow Jones Industrial Average closed at 33,912.44, up 0.45% (151.39 points) from the previous day.

Until now, Bitcoin prices have been influenced by the fluctuations of these major indices, linked to risk asset preference sentiment, but today they are showing a decoupling phenomenon. Experts predict that the opposite trend between global stock market key indicators and Bitcoin prices may continue. Jeff Dorman, Chief Investment Officer at digital asset management firm Arca, stated, "The timing of cryptocurrency events such as the Luna-Terra crash and macroeconomic events like inflation makes it difficult to prove decoupling," but he also analyzed, "Since mid-June, there have been large fluctuations in cryptocurrency prices, which signals that cryptocurrencies are traded according to their own flow rather than being tied to macro events."

However, there are forecasts that Bitcoin prices may find it difficult to rebound in the near term. Craig Erlam, Senior Market Analyst at global investment firm OANDA, said, "Cryptocurrency prices seem to be testing support levels after recent recovery," adding, "At present, there appears to be no momentum to aim for a bullish reversal."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, operator of the domestic cryptocurrency exchange Upbit, recorded 58.44 on the day, indicating a 'neutral' stage. This is a decrease of 0.91 from the previous day's 59.36 (greed). Dunamu's Digital Asset Fear & Greed Index is divided into stages of '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.