[Bitcoin Now] Weakness Amid US Stock Market Decline and Recession Concerns... Around $17,000

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are also declining as the U.S. stock market closed down, showing a synchronization phenomenon.

According to the global virtual asset market status relay site CoinMarketCap, as of 10:30 a.m. on the 7th, the price of Bitcoin was recorded at $17,054 (approximately 22.57 million KRW), down 0.12% from the previous day.

On the 6th (local time), the U.S. stock market closed lower amid concerns over an economic recession. The tech-heavy Nasdaq index closed at 11,014.89, down 225.05 points (2.0%). The Dow Jones Industrial Average fell 350.76 points (1.03%) to 33,596.34, and the S&P 500 index ended at 3,941.26, down 57.58 points (1.44%).

Executives of major banks warned of an economic recession, worsening investor sentiment. Additionally, economic indicators were weak. The U.S. trade deficit in October was $78.2 billion, up 5.4% from the previous month. The deficit expansion appears to have been influenced by a decrease in exports.

However, as there are forecasts that the virtual asset market will recover next year, the decline in Bitcoin prices was less than the drop in the U.S. stock market.

Investor sentiment for coins also revived. According to Alternative, a virtual asset data provider, the Fear & Greed Index, which indicates investment sentiment as an index, rose 4 points from the previous day to 29 points (fear) on the day. Alternative's Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investment, while a score near 100 indicates optimism.