[Bitcoin Now] Eyes on Jackson Hole Meeting... Decline Amid Shrinking Investor Sentiment

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Ahead of the Jackson Hole meeting, investment sentiment has weakened, causing the price of the representative cryptocurrency Bitcoin to show a bearish trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:35 a.m. on the 23rd, Bitcoin was trading at $21,373 (approximately 28.62 million KRW), down 0.18% from the previous day.

The price of Bitcoin is declining ahead of the Jackson Hole meeting, where the direction of the U.S. Federal Reserve's (Fed) monetary policy can be anticipated. Ahead of the September Federal Open Market Committee (FOMC) meeting, the market expects a 0.50 percentage point increase in the benchmark interest rate, but concerns over aggressive tightening continue as comments about a 0.75 percentage point hike have emerged. Fed Chair Jerome Powell is scheduled to deliver a speech on the topic of 'Economic Outlook' at the Jackson Hole meeting, drawing significant attention.

Edward Moya, Senior Market Analyst at global investment firm OANDA, analyzed that Bitcoin's momentum has disappeared as risk asset preference sentiment has softened ahead of the Jackson Hole meeting. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which expresses investment sentiment as an index, fell by 1 point from the previous day to 28 points (fear) on the same day. This is a 16-point drop compared to 44 points (fear) on the 16th of this month, a week ago. Alternative's Fear & Greed Index indicates that a score closer to 0 points means investors feel pessimistic fear about investing, while a score near 100 points means optimism.

Additionally, the decline in the U.S. stock market, which is showing a synchronization phenomenon, also influenced the drop in Bitcoin prices. On the 22nd (local time), the Nasdaq Composite Index, centered on technology stocks, closed down 323.64 points (2.55%) at 12,381.57. The Dow Jones Industrial Average fell 643.13 points (1.91%) to 33,063.61, and the large-cap-focused S&P 500 Index closed at 4,137.99, down 90.49 points (2.14%).