[Bitcoin Now] Downtrend Stops and Turns to Strong Sideways... Hovering Near $20,000

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The price of Bitcoin, which had been on a downward trend, has reversed and is holding steady around the $20,000 mark.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:07 AM on the 31st, Bitcoin was priced at $20,273 (approximately 27.35 million KRW), up 0.65% from the previous day. Although Bitcoin briefly dropped to the mid-$19,000 range earlier that day, breaking below the $20,000 level, it later rebounded.

Despite the rise, concerns about further declines in Bitcoin’s price have been raised. First, the U.S. stock market, which shows a correlation with Bitcoin, closed lower. On the 30th (local time), the Nasdaq index, which is tech-stock heavy and correlated with Bitcoin prices, closed at 11,883.14, down 1.12% (134.53 points) from the previous trading day. The Dow Jones Industrial Average fell 0.96% (308.12 points) to 31,790.87, and the S&P 500 dropped 1.10% (44.45 points) to 3,986.16.

The decline in the U.S. stock market has dampened investor sentiment. Edward Moya, Senior Market Analyst at global investment firm OANDA, said, "As investors’ risk aversion intensifies, Bitcoin’s price briefly fell below $20,000," adding, "If the S&P 500 falls more than 3%, Bitcoin’s price could drop to the lowest levels seen in June."

Investor sentiment is also cooling again. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, fell 4 points from 27 (Fear) the previous day to 23 (Extreme Fear) on this day. The Alternative Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.