[Bitcoin Now] Decline Ahead of US CPI Release... Investor Sentiment Revives

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of the leading cryptocurrency Bitcoin is showing a downward trend in the $21,000 range.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:44 PM on the 6th, the price of Bitcoin was recorded at $21,242 (approximately 29.97 million KRW), down 0.84% from the previous day.

Bitcoin's price is declining ahead of the release of the U.S. October Consumer Price Index (CPI) on the 10th. However, the previous day saw the U.S. stock market close higher, pushing Bitcoin from the $20,000 range back into the $21,000 range. On the 4th (local time), the Nasdaq Composite Index, focused on tech stocks, closed at 14,750.25, up 132.31 points (1.28%). The S&P 500 Index, centered on large-cap stocks, rose 50.66 points (1.36%) to 3,770.55, and the Dow Jones Industrial Average closed at 32,403.22, up 401.97 points (1.26%) from the previous session. The rise was driven by rebound buying after excessive declines and expectations of eased quarantine regulations for arrivals from China.

Despite four consecutive giant steps (0.75 percentage point interest rate hikes) decided at the Federal Open Market Committee (FOMC) regular meetings, Bitcoin managed to defend the $20,000 level. Furthermore, despite hawkish remarks from Federal Reserve Chairman Jerome Powell, the price only slightly declined. Chairman Powell stated that "the terminal rate could be higher than previously expected," a hawkish comment. The market expressed concerns that tightening could be more intense and prolonged than anticipated.

As Bitcoin successfully defended its price, investor sentiment is gradually recovering. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose 2 points from the previous day to 40 points (fear) on this day. Compared to 34 points (fear) a week ago on the 30th of last month, it increased by 6 points. Alternative’s Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investing, to 100 points, indicating optimism.