[Bitcoin Now] Sideways Movement Despite FTX Aftershock... Support at $16,000 Range

[Image source=AP Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The price of the leading cryptocurrency Bitcoin is remaining sideways amid the ongoing fallout from FTX's bankruptcy filing.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:31 AM on the 18th, Bitcoin was priced at $16,894 (approximately 22.6 million KRW), up 1.12% from the previous day.

The bankruptcy of FTX, the world's third-largest cryptocurrency exchange, is also impacting the crypto lending industry. Cryptocurrency lending firm Genesis Trading announced on the 16th (local time) that it would temporarily suspend new loans and redemptions. The company explained that this was due to abnormal withdrawal requests exceeding current liquidity following the FTX incident. Another crypto lending firm, BlockFi, is also reportedly preparing to file for bankruptcy as a result of this situation.

Meanwhile, the US stock market, which shows a correlated movement, closed lower, but Bitcoin's price did not show significant fluctuations. The US stock market declined amid growing concerns over tightening as Federal Reserve (Fed) officials hinted at further interest rate hikes. On the 16th (local time), the Nasdaq index, focused on technology stocks, closed at 11,144.96, down 0.35% (38.70 points) from the previous trading day. The Dow Jones Industrial Average fell 0.02% (7.51 points) to 33,546.32, and the S&P 500 index dropped 0.31% (12.23 points) to 3,946.56.

Despite the cascading shocks in the cryptocurrency market, Bitcoin appears to be testing support around the $16,000 level. Cryptocurrency specialized media CoinDesk reported, "The cryptocurrency market has recently shown a calm response," adding that "the prices of Bitcoin and other major cryptocurrencies are moving sideways."

Investor sentiment has somewhat eased. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 3 points from the previous day to 23 points (extreme fear). Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.