[Bitcoin Now] US Stock Market Rally Boosts 3% Gains... Investor Sentiment Improves

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the US stock market, showing a synchronization phenomenon, closed higher, the representative cryptocurrency Bitcoin also showed strength.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:09 AM on the 29th, the price of Bitcoin was recorded at $19,367 (approximately 27.8 million KRW), up 3.04% from the previous day.

Bitcoin prices are rising as the US stock market successfully rebounded. On the 28th (local time), the Nasdaq index, centered on technology stocks, closed at 11,051.64, up 222.13 points (2.05%). The Dow Jones Industrial Average rose 548.75 points (1.88%) to 29,683.74, and the large-cap S&P 500 index increased 71.75 points (1.97%) to 3,719.04.

The financial market instability somewhat eased as the Bank of England (BOE), the UK central bank, unveiled a large-scale government bond purchase plan. After the UK government announced a large-scale tax cut plan, the BOE stated it would purchase long-term government bonds until October 4th, as the pound sterling plunged to an all-time low against the dollar and government bond yields surged, increasing financial market volatility. Subsequently, government bond yields in major countries such as the UK and the US declined, and the dollar's strength also eased.

The cryptocurrency specialized media CoinDesk explained, "Bitcoin started the day in positive territory as the US stock market opened and recorded four consecutive hours of gains," adding, "Bitcoin surpassed $19,000 but failed to recover the psychologically important price level of $20,000."

As coin prices revived, investor sentiment also improved. According to the cryptocurrency data provider Alternative, the Fear & Greed Index, which expresses investor sentiment as an index, rose 2 points from the previous day to 22 points (extreme fear). 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.