[Bitcoin Now] Despite US Stock Market Rise, Tightening Concerns Cause Decline... Investor Sentiment Also 'Worsens'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Although the U.S. stock market closed higher, Bitcoin prices are weak due to concerns over the Federal Reserve's (Fed) tightening.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:11 a.m. on the 25th, Bitcoin was priced at $19,295 (approximately 27.78 million KRW), down 0.70% from the previous day.

Bitcoin prices are declining despite the U.S. stock market closing higher. On the 24th (local time), the Nasdaq Composite Index, focused on technology stocks, closed at 19,052.61, up 92.90 points (0.86%). The Dow Jones Industrial Average rose 417.06 points (1.34%) to 31,499.62, and the large-cap S&P 500 Index closed at 3,797.34, up 44.59 points (1.19%). This week is known as a "super week," with earnings reports pouring in from big tech companies such as Apple, Alphabet, Amazon, and Microsoft, and investors awaited these earnings announcements.

Despite the rise in the U.S. stock market, cryptocurrency investors appear to be focusing on the Fed's outlook for interest rate hikes. Cryptocurrency specialized media CoinDesk explained, "Investors continue to monitor the U.S. central bank's efforts to tame inflation." At the November Federal Open Market Committee (FOMC) meeting, the Fed is expected to implement a giant step (raising the benchmark interest rate by 0.75 percentage points at once). Inflation has not eased despite three consecutive giant steps. Earlier, the U.S. Consumer Price Index (CPI) for September rose 8.2% year-on-year, exceeding expert expectations.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, fell 2 points from the previous day to 20 points (extreme fear). Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to 100 points, indicating optimism.