[Bitcoin Now] Market on Hold Ahead of FOMC Day... Dogecoin Surges Again

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are hovering ahead of the Federal Reserve's (Fed) November Federal Open Market Committee (FOMC) regular meeting, where the benchmark interest rate will be decided.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:40 a.m. on the 2nd, Bitcoin was priced at $20,521 (approximately 29.08 million KRW), down 0.05% from the previous day.

Bitcoin prices are moving at similar levels to the previous day as investors take a wait-and-see stance ahead of the FOMC. At the FOMC starting on the 2nd, the Fed is expected to implement a "giant step" by raising the benchmark interest rate by 0.75 percentage points. It is also anticipated that the Fed will comment on the scale of the rate hike in December.

However, some expect that the rate hike magnitude will not ease at the December FOMC either. Edward Moya, Senior Market Analyst at global investment firm OANDA, said, "Momentum was building on expectations that the Fed would slow the pace of tightening in December, but it now seems premature," adding, "The Fed will likely have to wait until next year to reduce the size of rate hikes, which could also impact Bitcoin prices."

The U.S. stock market, which shows synchronization with Bitcoin, also fell slightly while awaiting the FOMC results. On the 1st (local time), the Nasdaq index, centered on technology stocks, closed at 10,890.85, down 0.89% (97.30 points) from the previous trading day. The Dow Jones Industrial Average fell 0.24% (79.75 points) to 32,653.20, and the S&P 500 index dropped 0.41% (15.88 points) to 3,856.10.

Meanwhile, among major altcoins, Dogecoin continues its sharp rise. At the same time, Dogecoin was up 13.23% from the previous day, trading at $0.1415 (approximately 201 KRW). This appears to be driven by expectations that Dogecoin could be used as an internal payment method on Twitter following Tesla CEO Elon Musk's acquisition of Twitter. Musk had also mentioned in April that the paid subscription service "Twitter Blue" should add a feature allowing payments with Dogecoin.

As Bitcoin prices hover, cryptocurrency investor sentiment remains at the same level as the previous day. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, was recorded at 30 points (fear), unchanged from the previous day. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investing, to 100 points, indicating optimism.