[Bitcoin Now] Near $19,400 Amid Tightening Concerns... Watching US September CPI

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] On the 10th, the price of the representative cryptocurrency Bitcoin fell to the $19,400 range. Investors are closely watching the U.S. September Consumer Price Index (CPI) to be announced on the 13th.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:51 PM on the same day, the price of Bitcoin was recorded at $19,465 (approximately 27.74 million KRW), up 0.46% from the previous day.

Bitcoin, which was in the $20,000 range on the 6th of this month, declined to the $19,400 range due to concerns over tightening. According to the U.S. Department of Labor, the unemployment rate in September this year fell to 3.5%, the lowest level in about 50 years. As employment indicators showed better-than-expected results, expectations grew that the Federal Reserve (Fed) would implement high-intensity tightening.

Joe DiPascal, CEO of BitBull Capital, told cryptocurrency media CoinDesk, "Bitcoin prices failed to break through $20,500, leading to a correction," adding, "To maintain the possibility of a rally, the $19,500 range must be defended."

Furthermore, he predicted that the U.S. September CPI would be an important variable. CEO DiPascal explained, "Especially as the CPI report announcement approaches, (Bitcoin prices) are expected to show greater volatility this month." Experts expect the September CPI to have risen 8.1% compared to the same period last year, slowing down from August's 8.3%. However, since it still remains in the 8% range, there is analysis that it is difficult to expect a shift in the tightening stance. If the Fed raises the benchmark interest rate by 0.75 percentage points next month, it will mark the fourth consecutive giant step.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as an index, remained at 22 points (extreme fear), the same as the previous day. Alternative's Fear & Greed Index means that the closer to 0 points, the more pessimistic investors feel (extreme fear), and the closer to 100 points, the more optimistic they are.