[Bitcoin Now] Weakness Continues Amid Recession Concerns... Retreat to the $16,000 Range

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are on a downward trend amid ongoing concerns about an economic recession.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:50 AM on the 8th, Bitcoin was priced at $16,812 (approximately 22.21 million KRW), down 1.36% from the previous day.

Bitcoin prices appear to be influenced by the U.S. stock market, which shows a synchronized movement and closed lower due to recession fears. On the 7th (local time), the Nasdaq index, focused on technology stocks, closed at 10,958.55, down 0.51% (56.34 points) from the previous trading day in the New York stock market. The S&P 500 index also closed down 0.19% (7.34 points) at 3,933.92. The Dow Jones Industrial Average closed almost flat, rising 0.00% (1.58 points) to 33,597.92.

Investors are presumed to be cautious ahead of the upcoming regular meeting of the U.S. Federal Reserve's Federal Open Market Committee (FOMC) next week and the November inflation report. Experts in the New York stock market note that recession signals are becoming clearer in economic indicators and expect the current market trend to continue until the FOMC meeting and inflation data are released.

Meanwhile, some assessments suggest that the negative impact on the cryptocurrency market from the FTX bankruptcy has somewhat eased. Joe Orsini, Research Director at Eaglebrook Advisors, stated, "No news is good news when it comes to the unexpected," adding, "Although there were concerns about a chain reaction following the FTX bankruptcy, the worsening situation was slow, and no new shocks occurred."

However, investor sentiment in cryptocurrencies has frozen again. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped 4 points from the previous day to 25 points (extreme fear) on this day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.