[Bitcoin Now] Rising Despite FTX Collapse Impact... Investor Sentiment Revives

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Although the aftermath of the global cryptocurrency exchange FTX bankruptcy continues, the price of the leading cryptocurrency Bitcoin is on the rise.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 2:03 PM on the 26th, the price of Bitcoin was recorded at $16,636 (approximately 22.26 million KRW), up 1.37% from the previous day. WEMIX, a coin issued by Wemade that was delisted (trading support ended) on the five major domestic exchanges, recorded a price of $0.4261 (approximately 570 KRW), down 6.68%.

Although the cryptocurrency market continues to feel the impact following FTX's bankruptcy filing, Bitcoin prices appear to be more influenced by the possibility of a slowdown in the pace of interest rate hikes. The Federal Reserve (Fed) stated in the FOMC minutes released on the 23rd (local time) that "a significant number of participants judged that it would be appropriate to slow the pace of rate hikes soon." Cryptocurrency specialized media CoinDesk evaluated that Bitcoin prices rose due to signals that the Fed's tightening policy would ease.

Furthermore, Zhao Changpeng, CEO of Binance, the world's largest exchange, is taking steps to mitigate the impact of the FTX collapse by establishing an industry recovery fund. He announced the creation of a $1 billion industry recovery fund, which could be increased to $2 billion. Binance said it had received commitments of $50 million from cryptocurrency investment companies such as Jump Crypto, Polygon Ventures, and Animoca Brands.

However, despite these efforts, the FTX incident continues to shock the market. Cryptocurrency lending companies that invested in FTX, such as Genesis Trading and BlockFi, are reportedly exposed to bankruptcy risks.

Cryptocurrency investment sentiment is recovering. According to the cryptocurrency data provider Alternative, the Fear & Greed Index, which indicates investment sentiment as an index, rose by 2 points from the previous day to 22 points (extreme fear). Alternative's Fear & Greed Index means that the closer the score is to 0, the more pessimistic investors feel with extreme fear, and the closer it is to 100, the more optimistic they are.