[Bitcoin Now] Will Synchronization Break... Rising Despite US Stock Market Decline

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The US stock market, which had been showing a synchronization phenomenon, closed lower, but the price of the representative cryptocurrency Bitcoin is on the rise.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:18 AM on the 27th, the price of Bitcoin was recorded at $19,338 (approximately 27.6 million KRW), up 2.70% from the previous day.

Bitcoin's price rose despite the US stock market, which had shown synchronization, falling. On the 26th (local time), the Nasdaq index, centered on tech stocks, closed at 10,802.92, down 65 points (0.60%), the Dow Jones Industrial Average closed at 29,260.81, down 329.60 points (1.11%) from the previous session, and the S&P 500 index, focused on large-cap stocks, recorded 3,655.04, down 38.19 points (1.03%). Investor sentiment weakened as financial market instability in the UK spread due to a sharp drop in the pound and government bond prices.

Cryptocurrency specialized media CoinDesk explained, "Despite turmoil in traditional financial markets, Bitcoin is holding up relatively well," adding, "Bitcoin is definitely neutral and is trading within the price range from mid to late June." Additionally, some analysts suggest that as the US stock market continued to decline, some investors sought refuge in the cryptocurrency market.

However, despite the rise in Bitcoin prices, investor sentiment remained subdued. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment as an index, dropped by 1 point from the previous day to 20 points (extreme fear). This is a 3-point decrease from 23 points (extreme fear) recorded a week ago on the 20th of this month. Alternative's Fear & Greed Index means that the closer the score is to 0, the more pessimistic investors feel (extreme fear), and the closer it is to 100, the more optimistic they are.