[Bitcoin Now] Continues 'Tightening Fear' Causes Price to Stall at $19,500 Range

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The representative cryptocurrency Bitcoin is showing weakness amid ongoing fears of tightening.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 4:06 PM on the 8th, the price of Bitcoin was recorded at $19,519 (approximately 27.81 million KRW), down 1.86% from the previous day.

The price of Bitcoin declined as expectations for aggressive tightening by the Federal Reserve (Fed) intensified. According to the U.S. Department of Labor, nonfarm payroll employment increased by 263,000 in September this year, falling short of market expectations. However, the unemployment rate dropped to 3.5%, reaching the lowest level in about 50 years. As the unemployment rate hit a 50-year low, expectations strengthened that the Fed would implement aggressive tightening measures.

On the 7th (local time), the Nasdaq index, which is centered on technology stocks showing synchronization, closed down 420.91 points (3.80%) at 10,652.41. The Dow Jones Industrial Average fell 630.15 points (2.11%) to 29,296.79, and the large-cap S&P 500 index ended trading down 104.86 points (2.80%) at 3,639.66.

Additionally, news that Binance, the world's largest cryptocurrency exchange, suffered losses exceeding $500 million (approximately 712.5 billion KRW) due to a hacking incident also weighed on the market.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as an index, rose by 1 point from the previous day to 24 points (extreme fear). Alternative's Fear & Greed Index means that the closer the score is to 0, the more pessimistic investors feel, indicating extreme fear, while a score approaching 100 indicates optimism.