Coin Investment Sentiment Revives on Remarks of Smaller Base Rate Hike... From 'Extreme Fear' to 'Fear'

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the representative virtual asset Bitcoin price rises to the $17,000 range and the coin market shows signs of recovery, investor sentiment is also reviving.

According to cryptocurrency data provider Alternative on the 3rd, the Fear & Greed Index, which indicates investor sentiment, was recorded at 27 points (fear), the same as the previous day. Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to 100 points, indicating optimism.

The index has been gradually rising since the global virtual asset exchange FTX bankruptcy incident. It dropped to 20 points (extreme fear) on the 25th of last month, but as coin prices rose, investor sentiment revived, reaching 29 points (fear) on the 30th.

Following the FTX incident, Bitcoin prices, which had been hovering in the $16,000 range, rose to the $17,000 range, supported by Federal Reserve (Fed) Chair Jerome Powell's remarks that the pace of interest rate hikes could slow from December. The news that the pace of interest rate hikes, which has an absolute impact on virtual asset prices, would ease drove the price increase.

Chairman Powell explained, "The time to slow the pace of rate hikes could come as early as December." He added, "The Fed raised rates quickly, and it takes time for these moves to affect the economy," and said, "It would be reasonable to slow down the rate hikes." However, he also stated, "Despite some progress, there is still a long way to go to restore price stability," and "To maintain price stability, it is necessary to keep restrictive policies for some time."

According to the global cryptocurrency market relay site CoinMarketCap, as of 11 a.m. on the day, Bitcoin price was $17,054 (approximately 22.27 million KRW), up 0.71% from the previous day.

Additionally, WEMIX, a coin issued by Wemade, recorded a 37.36% increase to $0.6015 (approximately 786 KRW). The day before, the Seoul Central District Court Civil Division 50 (Chief Judge Song Kyung-geun) held a hearing on Wemade's injunction request to suspend the delisting effect filed against the four major domestic exchanges including Upbit. The court decided to determine whether to grant the injunction by the 7th, the day before the termination of trading support, and as expectations for a delisting suspension arose among investors, the price surged sharply.