[Bitcoin Now] Taking a Breather Ahead of Jackson Hole Meeting... 'Alert' to Monetary Policy Direction

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] Ahead of the Jackson Hole meeting, which can gauge the direction of the U.S. Federal Reserve's (Fed) monetary policy, the price of the representative cryptocurrency Bitcoin is on the rise.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 9:51 a.m. on the 22nd, the price of Bitcoin was recorded at $21,471 (approximately 28.72 million KRW), up 1.15% from the previous day.

Bitcoin's price is showing an upward trend as a rebound buying force has entered due to excessive price drops. The previous day, Bitcoin's price fell to the $20,800 range amid growing inflation concerns. On the 19th (local time), Germany's July Producer Price Index (PPI) recorded 37%, and there were analyses that central banks of various countries would take aggressive steps to raise benchmark interest rates.

Investors are focusing on the Jackson Hole meeting scheduled for the 25th to 27th. Fed Chair Jerome Powell is expected to give a speech, which can provide clues about the Fed's monetary policy direction. If many remarks emphasize the necessity of raising benchmark interest rates, the ripple effects on the financial market could be significant. The Jackson Hole meeting refers to the economic forum held annually at the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming, at the end of August.

Meanwhile, according to the cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as an index, rose by 2 points from the previous day to 29 points (fear). This is a 16-point drop compared to 45 points (fear) on the 15th of this month, a week ago. 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.