[Bitcoin Now] Bitcoin Falls Below $20,000 Amid Powell's Speech Impact... Investor Sentiment Turns to 'Fear'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are showing weakness following the hawkish speech by Jerome Powell, Chairman of the U.S. Federal Reserve (Fed).

According to the global cryptocurrency market tracking site CoinMarketCap, as of 2:32 PM on the 28th, Bitcoin was priced at $19,982 (approximately 26.84 million KRW), down 0.65% from the previous day. This marks a 5.63% decline compared to a week ago on the 21st, and it is the first time Bitcoin has fallen into the $19,000 range since July 14.

Bitcoin prices declined after Chairman Powell reaffirmed a tightening stance during his speech at the Jackson Hole meeting. Powell stated, "We must maintain a restrictive stance for the time being," and added, "Unfortunately, reducing inflation comes with costs." He also warned, "Failing to stabilize prices will inevitably lead to greater pain."

As the leading cryptocurrency Bitcoin shows weakness, investor sentiment has also reached a fearful level. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, was recorded at 28 points (fear) on the same day, unchanged from the previous day. This is a 5-point drop from 33 points (fear) at the beginning of this month. Alternative’s Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investing, to 100 points, indicating strong optimism.

Domestically, Dunamu, which operates the cryptocurrency exchange Upbit, reported its Digital Asset Fear & Greed Index at 39.98, indicating a fear stage. Although this is a 2.08-point increase from the previous day, it is a 2.77-point decrease compared to 42.75 (neutral) on the 21st of this month. Dunamu’s Digital Asset Fear & Greed Index is classified into five stages: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. Moving toward extreme fear indicates declining investor sentiment, while moving in the opposite direction indicates improving investor sentiment.

This content was produced with the assistance of AI translation services.