[Bitcoin Now] Box Range Movement Amid FOMC Caution... Ethereum Stops Declining

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are hovering around the $19,000 mark amid caution ahead of the U.S. Federal Open Market Committee (FOMC) meeting. Ethereum, which had been plunging until the previous day, has also taken a brief pause.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:55 a.m. on the 20th, Bitcoin was priced at $19,466 (approximately 27.05 million KRW), down 0.23% from the previous day.

Bitcoin prices appear to be staying 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. The market widely expects the Fed to implement a third consecutive "giant step" (a 0.75 percentage point increase in the benchmark interest rate) at the September FOMC. However, some speculate that the Fed might take an "ultra step," raising rates by 1 percentage point at once.

At the same time, Ethereum, the leading altcoin, was priced at $1,364 (approximately 1.89 million KRW), up 1.13% from the previous day. Ethereum, which recently completed the Merge update successfully, had experienced a decline of over 7% the day before. Jeff Dorman, Chief Investment Officer at digital asset management firm Arca, commented on Ethereum's price drop, saying, "The Merge update itself does not seem to have attracted new investment demand," but added, "We need to observe profit trends over the next 6 to 12 months."

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 2 points from 21 (extreme fear) the previous day to 23 (extreme fear) on the same day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating optimism.