[Bitcoin Now] Surges Over 9% in One Day... Reaches $21,000 Level

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of the leading cryptocurrency Bitcoin rose more than 9%, recovering to the $21,000 level.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:23 AM on the 10th, the price of Bitcoin was recorded at $21,246 (approximately 29.38 million KRW), up 9.71% from the previous day. This is the first time Bitcoin has recovered to the $21,000 level since the 27th of last month.

The cryptocurrency specialized media CoinDesk reported that this was the largest daily increase in over six months. Analysts attribute this price rise to the European Central Bank (ECB) raising its key interest rate by 0.75 percentage points, which led to a weakening of the dollar. Additionally, bargain buying also drove Bitcoin's rise.

Furthermore, the U.S. stock market, which shows a synchronized movement, closed higher while awaiting the Consumer Price Index (CPI) announcement next week. On the 9th (local time), the S&P 500 index closed at 4,067.36, up 61.18 points (1.53%), the Nasdaq index rose 250.18 points (2.11%) to 12,112.31, and the Dow Jones Industrial Average increased by 377.19 points (1.19%) to 32,151.71.

However, it is explained that this is not yet a full-fledged recovery. Daniel Costeki, Senior Market Researcher at Konotoxia, said, "Investors can sell at any time." Joe DiPascal, CEO of BitBull Capital, explained, "There has been no significant change in the macro environment, so this is a typical short covering and short squeeze." This means that although investors bet on a decline and sold, short covering occurred as they repurchased Bitcoin, causing the price to rise.

As Bitcoin prices rose, investor sentiment revived. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose 6 points from 22 (extreme fear) the previous day to 28 (fear) on the same day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.