[Bitcoin Now] Decline Ahead of November FOMC... Investor Sentiment Also 'Cooling'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are weak ahead of the November Federal Open Market Committee (FOMC) meeting.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:59 a.m. on the 31st, the price of Bitcoin was recorded at $20,535 (approximately 29.22 million KRW), down 1.14% from the previous day.

Cryptocurrency investors are closely watching the results of the Federal Reserve's (Fed) November FOMC regular meeting, scheduled to be announced on December 2 (local time). It is expected that the Fed will implement a 0.75% rate hike, known as a giant step, at this FOMC. If the Fed raises the benchmark interest rate by 0.75 percentage points again, it will mark the fourth consecutive giant step.

Cryptocurrency specialized media CoinDesk explained, "Bitcoin prices showed a monthly increase for the first time since July," but noted that it was not an Uptober. Uptober is a portmanteau of "Up" and "October," referring to the trend where Bitcoin has historically shown strength every October. Greg Cipolaro, Chief Research Officer at New York Digital Investment Group (NYDIG), stated, "Since the macroeconomic environment remains fluid, it remains to be seen whether this rally will continue."

As investors' concerns about the giant step persist, cryptocurrency investment sentiment has also weakened. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investment sentiment, was recorded at 31 points (fear) on the day, down 3 points from the previous day. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to near 100 points, indicating optimism.