[Bitcoin Now] Weakness Amid Nasdaq Decline Due to 'Poor Earnings'... Investor Sentiment Also Worsens

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices fell more than 2% as the US Nasdaq index, centered on technology stocks, closed lower.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:06 AM on the 28th, the price of Bitcoin was recorded at $20,265 (approximately 28.77 million KRW), down 2.06% from the previous day. However, following the news that Elon Musk, CEO of Tesla, completed the acquisition deal of the social networking service (SNS) Twitter, Dogecoin rose 3.50% from the previous day to $0.075 (approximately 106 KRW).

Bitcoin prices are showing weakness as the Nasdaq index, which tends to move in sync, declined. On the 27th (local time), the Nasdaq index closed at 10,792.68, down 178.32 points (1.63%). The S&P 500 index, centered on large-cap stocks, closed at 3,807.30, down 23.30 points (0.61%), while the Dow Jones Industrial Average closed at 32,033.28, up 194.17 points (0.61%) from the previous session.

Meta plunged 24.56% from the previous session due to a sharp drop in earnings. Apple and Amazon, which are about to announce earnings, fell 3.05% and 4.06%, respectively. Microsoft and Google Alphabet, which disclosed poor earnings, dropped 1.98% and 2.85%, respectively. Although the US third-quarter gross domestic product (GDP) growth rate was preliminarily estimated at 2.6% (annualized) compared to the previous quarter, the Nasdaq index was sluggish due to poor earnings. The US GDP growth rates for the first and second quarters were -1.6% and -0.6%, respectively, indicating a technical recession.

The cryptocurrency specialized media CoinDesk explained, "The GDP report did little to ease investors' concerns about inflation and the possibility of a sharp economic downturn."

Meanwhile, according to the cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as an index, was recorded at 30 points (fear), down 2 points from the previous day. Alternative's Fear & Greed Index means that the closer it is to 0 points, the more extreme fear and pessimism investors feel about investing, and the closer it is to 100 points, the more optimistic they are.