[Bitcoin Now] Slight Rise Amid US Interest Rate Hike Slowdown Debate... Investor Sentiment Remains 'Frozen'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] The price of Bitcoin, the leading cryptocurrency, is on the rise in the $16,000 range as the U.S. Federal Reserve (Fed) hints at slowing the pace of interest rate hikes.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11 a.m. on the 24th, Bitcoin was priced at $16,748 (approximately 22.36 million KRW), up 3.32% from the previous day. Despite the ongoing fallout from the FTX bankruptcy filing, Bitcoin prices have risen for two consecutive days.

The possibility that the Fed, which had been implementing significant rate hikes recently, might slow the pace appears to have influenced the price increase. In the FOMC minutes released on the 23rd (local time), the Fed stated that "a considerable number of participants judged that it would be appropriate to slow the pace of rate hikes soon." The Fed had previously hinted at the possibility of adjusting the pace of rate hikes during its November meeting.

The U.S. stock market, which showed a synchronized movement with Bitcoin prices amid the rate hike pace moderation theory, also closed higher. On this day, the Nasdaq index in the New York stock market closed at 11,285.32, up 0.99% (110.91 points) from the previous trading day. The Dow Jones Industrial Average rose 0.28% (95.96 points) to 34,194.06, and the S&P 500 index climbed 0.59% (23.68 points) to 4,027.26. The S&P 500 index surpassed 4,000 points for the first time since September based on the closing price.

Some predict that Bitcoin prices will gradually stabilize. Katie Stockton, an analyst at Fairlead Strategies, noted, "Bitcoin prices rose despite signals of a short-term decline," adding, "Bitcoin price charts are showing signs of stabilization." She further forecasted, "It is expected to remain stable over the next few weeks."

Although Bitcoin prices are rising, investor sentiment is freezing in the opposite direction. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped 2 points from the previous day to 20 points (extreme fear) on this day. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to 100 points, indicating optimism.