[Bitcoin Now] Box Range Declines Amid Interest Rate Hike Possibility... Below $23,000

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices have fallen below $23,000 for the third consecutive day. Amid concerns that the U.S. may implement another significant interest rate hike next month, a wait-and-see stance continues, with prices moving within the lower box range, analysts say.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:15 a.m. on the 18th, Bitcoin was priced at $22,786 (approximately 30.22 million KRW), down 2.95% from the previous day.

Bitcoin prices continued a slight decline following the previous day as the possibility of an additional U.S. benchmark interest rate hike loomed. In the Federal Open Market Committee (FOMC) minutes released by the U.S. Federal Reserve (Fed) on the 17th (local time), participants stated that "inflation continues to exceed the target rate (2%) by a wide margin, making it essential to maintain a restrictive policy stance to fulfill the committee's mandate of maximum employment and price stability," continuing their hawkish remarks.

However, despite these remarks, the decline in Bitcoin's price is considered limited. Nauman Shaikh, Director at Wave Financial, a cryptocurrency investment management firm, analyzed, "Bitcoin prices have been moving within a limited range after reaching the $25,000 level," adding, "The cryptocurrency market appears to be influenced by the macroeconomic environment."

The U.S. Nasdaq index, which shows a synchronized movement with Bitcoin prices, closed slightly higher. On the 18th (local time), the tech-heavy Nasdaq index ended trading at 12,965.34, up 0.21% (27.22 points) from the previous trading day. The Dow Jones Industrial Average rose 0.06% (18.72 points) to 33,999.04, and the S&P 500 index closed up 0.23% (9.70 points) at 4,283.74.

Investor sentiment has somewhat recovered compared to the previous day but remains frozen. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose 3 points to 33 (Fear) from the previous day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.