[Bitcoin Now] Powell's Remarks Cause Surge... "Interest Rate Hike Pace May Slow as Early as December"

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin, the leading cryptocurrency, rose in price following remarks by Jerome Powell, Chairman of the Federal Reserve (Fed), suggesting that the pace of interest rate hikes could slow down starting in December.

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 9:54 a.m. on the 1st, Bitcoin was priced at $17,151 (approximately 22.27 million KRW), up 2.02% from the previous day.

Bitcoin's price showed an upward trend due to Powell's comments. In a speech hosted by the Brookings Institution on the 30th of last month (local time), Powell explained, "The time to slow the pace of rate hikes could come as early as December." He added, "The Fed has raised rates quickly, and it takes time for these moves to affect the economy," and said, "It would be reasonable to slow the pace of rate hikes." However, he also noted, "Despite some progress, there is still a long way to go to restore price stability," and "To achieve price stability, it will be necessary to maintain restrictive policy levels for some time."

The U.S. stock market, which showed a contagion effect to these remarks, also rose. The Nasdaq index closed at 11,468.00, up 484.22 points (4.41%). The Dow Jones Industrial Average rose 737.24 points (2.18%) to 34,589.77, and the large-cap-focused S&P 500 index ended trading at 4,080.11, up 122.48 points (3.09%).

Despite the rise in Bitcoin prices, investor sentiment weakened. According to Alternative, a cryptocurrency data provider, the Fear & Greed Index, which measures investor sentiment, fell by 2 points from the previous day to 27 points (fear) on the same day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.