[Bitcoin Now] Dark Outlook Despite Rise... "Will Drop to $12,500 Before Year-End"

[Image source=AP Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Despite the bankruptcy filing of the global cryptocurrency exchange FTX, the price of the leading cryptocurrency Bitcoin is on the rise in the $16,000 range. However, due to the FTX incident, the outlook is not very bright, with some claims that it could fall to $12,500.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:08 AM on the 23rd, the price of Bitcoin was recorded at $16,171 (approximately 21.83 million KRW), up 1.94% from the previous day.

Amid the ongoing aftershocks of the FTX incident, Bitcoin prices showed strength today. This is interpreted as being influenced by the rise in the U.S. stock market, which shows a synchronization phenomenon. The U.S. stock market rose due to strong corporate earnings and the possibility of a smaller increase in the benchmark interest rate.

On the 22nd (local time), the Nasdaq Composite Index, focused on technology stocks, closed at 11,174.41, up 149.90 points (1.36%). The Dow Jones Industrial Average rose 397.82 points (1.18%) to 34,098.10, and the large-cap S&P 500 Index closed at 4,003.58, up 53.64 points (1.36%). Investors are awaiting the minutes of the November Federal Open Market Committee (FOMC) meeting, which could provide clues about the Federal Reserve's (Fed) monetary policy. There is speculation that while the Fed's rate hike pace may slow, the final rate could be higher than expected.

Although Bitcoin prices rose due to the U.S. stock market's gains, the outlook remains bleak. Julius de Kempenaer, chief analyst at StockCharts.com, explained, "Currently, the market is digesting the negative news, but Bitcoin prices are expected to fall to around $12,500 before the end of the year." The FTX situation remains difficult to resolve. As of the 20th, documents submitted by FTX to the Delaware bankruptcy court showed a cash balance of $1.24 billion (1.6764 trillion KRW), but this falls short of the minimum $3 billion debt owed to creditors.

Despite the rise in Bitcoin prices, investor sentiment remains in a state of extreme fear. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, remained at 22 points (extreme fear) on the day, unchanged from the previous day. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to 100 points, indicating optimism.