[Bitcoin Now] Sideways Movement Ahead of FOMC... Ethereum Plummets 7%

Ethereum Lowest Price Since July

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are hovering around the $19,000 level ahead of the Federal Open Market Committee (FOMC) meeting. Ethereum, which successfully completed its Merge update, is down more than 7%.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:42 a.m. on the 19th, Bitcoin was priced at $19,429 (approximately 26.98 million KRW), down 3.02% from the previous day.

Bitcoin prices appear to be consolidating within a range as caution spreads ahead of the U.S. Federal Reserve's (Fed) interest rate decision. The Fed will hold its regular FOMC meeting on the 20th and 21st to decide on the benchmark interest rate. Joe DiPascal, CEO of BitBull Capital, said, "Bitcoin's rebound rally reversed into a decline following the U.S. August Consumer Price Index (CPI) that exceeded expectations and the Ethereum Merge update," adding, "With some expecting more hawkish measures, the upcoming FOMC will be a key point for the cryptocurrency market."

At the same time, Ethereum, which successfully completed the Merge upgrade, recorded a 7.26% drop to $1,346 (approximately 1.86 million KRW), widening its losses compared to the previous day. Cryptocurrency media outlet CoinDesk reported that Ethereum's price is at its lowest level since July.

Earlier on the 15th, Ethereum founder Vitalik Buterin tweeted, "We have completed the Merge," calling it "an important moment for the Ethereum ecosystem." The Merge upgrade primarily involves transitioning the Ethereum blockchain algorithm from the existing Proof of Work (PoW) method to Proof of Stake (PoS). Proof of Work means participating in the blockchain through computer processing power and receiving coins as rewards, while Proof of Stake means staking held cryptocurrencies on the blockchain to participate in validation and creation in exchange for coins. The Merge upgrade is expected to partially resolve carbon emission issues.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped 6 points from 27 (Fear) the previous day to 21 (Extreme Fear) on the same day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.