[Bitcoin Now] Rising on Expectations of Slower Interest Rate Hikes... Above $17,000

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the representative cryptocurrency, is showing strength amid expectations that the Federal Reserve (Fed) will slow the pace of interest rate hikes.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:39 AM on the 5th, Bitcoin was priced at $17,233 (approximately 22.31 million KRW), up 1.55% from the previous day. At the same time, WEMIX, a coin issued by Wemade, rose 19.58% to $0.8945 (approximately 1,158 KRW) amid expectations of a grace period before delisting.

Bitcoin's price has been on the rise since the Fed's discussion about slowing the pace of rate hikes in December. Fed Chair Jerome Powell explained on the 30th of last month (local time), "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 impact the economy," and "It would be reasonable to slow the pace of rate hikes." However, he also stated, "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 a restrictive policy stance for some time."

Additionally, the weakening of the US dollar is also considered to have had an impact. The Dollar Index, which shows the value of the dollar against six major currencies, exceeded 110 until early last month but fell to 104.55 as of the 2nd. Typically, the Dollar Index shows an inverse correlation with cryptocurrency prices.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped by 1 point from the previous day to 26 points (fear) on the same day. Alternative's Fear & Greed Index ranges from 0 to 100, where 0 indicates extreme fear and pessimism about investment, and a score close to 100 indicates optimism.