[Bitcoin Now] Rising Trend with US Stock Market Rebound... Settling in Mid $19,000 Range

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myungwhan Lee] As the U.S. stock market rebounds, the price of the representative cryptocurrency Bitcoin is also showing an upward trend.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:40 a.m. on the 4th, the price of Bitcoin was recorded at $19,541 (approximately 28.02 million KRW), up 1.87% from the previous day.

The rise in Bitcoin prices is estimated to be due to the rebound in the U.S. stock market, which has shown a synchronized movement. On the 3rd (local time), the Nasdaq index, centered on technology stocks, closed at 10,815.44, up 2.27% (239.82 points) from the previous trading day in the New York stock market. The S&P 500 index rose 2.59% (92.81 points) to 3,678.43, and the Dow Jones Industrial Average closed at 29,490.89, up 2.66% (765.38 points).

Experts have predicted that Bitcoin prices will rebound again in the fourth quarter. This is because, based on past cases, Bitcoin has shown a rebound trend every fourth quarter. John Campagna, manager at cryptocurrency investment firm CoinFund, said, "Bitcoin prices typically experience a decline in September each year but have posted the best quarterly performance in the fourth quarter," adding, "However, it remains to be seen whether this trend will repeat in the fourth quarter of this year."

On the other hand, there is also a view that Bitcoin prices will not break out of the box range. Anastasia Amoroso, chief investment strategist at alternative investment firm iCapital, said, "Bitcoin prices are close to the bottom, but unless the U.S. Federal Reserve (Fed) changes its policy direction, the possibility of breaking out of the $19,000 to $20,000 box range is low," and predicted, "Until then, Bitcoin will likely maintain its current level."

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as an index, dropped 4 points from the previous day to 20 points (extreme fear) on the same day. Alternative's Fear & Greed Index means that the closer to 0 points, the more extreme fear and pessimism investors feel, and the closer to 100 points, the more optimistic they are.