[Bitcoin Now] Bitcoin Rises 8% Amid US Stock Surge... Investor Sentiment Still 'Extreme Fear'

[Image source=AP Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Despite the liquidity crisis at the global cryptocurrency exchange FTX, the US stock market surged across the board, causing the price of the leading cryptocurrency Bitcoin to jump more than 8%.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:05 AM on the 11th, the price of Bitcoin was recorded at $17,571 (approximately 23.6 million KRW), up 8.37% from the previous day. Ethereum, the leading altcoin, rose 14.37% to $1,290 (approximately 1.73 million KRW).

Bitcoin prices have been rising as the US October Consumer Price Index (CPI) increased by 7.7% year-on-year, lower than expected, triggering a sharp rally in the US stock market. The October CPI figure represents the smallest increase since January this year. On the 10th (local time), the Nasdaq index closed at 11,114.15, up 760.97 points (7.35%). The Dow Jones Industrial Average rose 1,201.43 points (3.70%) to 33,715.37, and the large-cap-focused S&P 500 index closed at 3,956.37, up 207.80 points (5.54%). The gains in the Nasdaq and S&P 500 indices were the highest since April 2020.

Until the day before, Bitcoin prices had plunged to the $15,000 range due to a bank run (a situation where customers withdraw coins all at once) triggered by concerns over the financial instability of a related company at FTX, and the world's largest cryptocurrency exchange Binance withdrawing its acquisition offer. However, the sharp rise in the US stock market, showing a synchronization effect, reduced the extent of the decline.

Cryptocurrency specialized media CoinDesk evaluated, "Major altcoins such as Bitcoin and Ethereum reduced their losses as the CPI was lower than expected amid the crisis at cryptocurrency exchanges."

However, cryptocurrency investor sentiment remains subdued. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment as an index, rose 3 points from the previous day to 25 points (extreme fear) on the same day. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to 100 points, indicating optimism.