[Bitcoin Now] Powell's 'Hawkish' Remarks Lead to Only Slight Decline... Support Holds at $20,000

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the representative cryptocurrency, slightly declined following hawkish remarks by Jerome Powell, Chair of the Federal Reserve (Fed).

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:11 AM on the 4th, Bitcoin was priced at $20,294 (approximately 28.92 million KRW), down 0.15% from the previous day.

On the 3rd (local time), the U.S. stock market, which showed synchronization, closed lower due to the impact of the fourth consecutive giant step (a 0.75 percentage point increase in the benchmark interest rate) decided immediately after the Federal Open Market Committee (FOMC) regular meeting. The tech-heavy Nasdaq index fell 181.86 points (1.73%) to 13,342.94. The large-cap S&P 500 index dropped 39.80 points (1.06%) to 3,980, and the Dow Jones Industrial Average closed at 32,001.25, down 146.51 points (0.46%) from the previous session.

Chairman Powell hinted at a possible slowdown in the pace of rate hikes during the press conference following the FOMC regular meeting but made hawkish remarks, stating that "the terminal rate could be higher than previously expected." This led the market to interpret that the Fed might raise the terminal rate above the previously anticipated 4.6%, raising concerns that tightening could be more intense and prolonged than expected.

However, despite Powell's remarks, Bitcoin's price did not show significant fluctuations. Michael Safai, partner at cryptocurrency trading firm Dexterity Capital, said, "Bitcoin's price is receiving substantial technical support from miners and institutional investors who psychologically regard the $20,000 level as important."

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, was recorded at 30 points (fear) for the third consecutive day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.