[Bitcoin Now] Decline Ahead of Jackson Hole Meeting... Investor Sentiment at 'Extreme Fear'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of the representative cryptocurrency Bitcoin is weak. Ahead of the Jackson Hole meeting, which can gauge the future monetary policy of the U.S. Federal Reserve (Fed), the coin market is showing a strong wait-and-see stance.

According to the global cryptocurrency market status relay site CoinMarketCap, as of 10:14 a.m. on the 25th, Bitcoin was trading at $21,497 (approximately 28.77 million KRW), down 0.46% from the previous day. It rose to the $21,700 range around 4:40 a.m. that day but then gave back the gains.

Bitcoin prices are moving in the $21,000 range without significant fluctuations ahead of the Jackson Hole meeting scheduled for the 25th to 27th. Fed Chair Jerome Powell is scheduled to give a speech on the topic of "economic outlook" at the Jackson Hole meeting, drawing investors' attention. There is also a forecast that the coin market will move once the Fed's monetary policy direction is understood after the Jackson Hole meeting.

However, there is also analysis that it will take time for the market to rebound even after the Jackson Hole meeting. Edward Moya, senior market analyst at global investment firm OANDA, explained, "Until data shows that inflation has decreased, there are not many means to stop the Fed's hawkish stance, so risky assets may remain confined within a certain range even after Chair Powell's speech."

The U.S. stock market, which shows a synchronization phenomenon, also closed higher within a narrow range. On the 24th (local time), the Nasdaq index, centered on technology stocks, rose 50.23 points (0.41%) to close at 12,431.53, the Dow Jones Industrial Average rose 59.64 points (0.18%) to close at 32,969.23, and the large-cap S&P 500 index closed at 4,140.77, up 12.04 points (0.29%).

As the wait-and-see stance continued, investor sentiment also failed to revive. According to cryptocurrency data provider Alternative, the fear and greed index, which indicates investor sentiment as an index, was recorded at 25 points (extreme fear), the same as the previous day. This is a 5-point drop from 30 points (fear) on the 18th of this month, a week ago. Alternative's fear and 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.