[Bitcoin Now] Sideways Movement Around $17,000... Investor Sentiment Is 'Gongginori'

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of the leading cryptocurrency Bitcoin is hovering in the $17,000 range.

According to the global crypto asset market tracking site CoinMarketCap, as of 8:27 a.m. on the 11th, the price of Bitcoin was recorded at $17,138 (approximately 22.38 million KRW), up 0.04% from the previous day.

Amid concerns of an economic recession, Bitcoin's price had fallen to the $16,000 range on the 7th. Wall Street financial executives expressed worries about the recession. They noted that economic indicators are showing clear signs of a downturn and expected the current market trend to continue until the Federal Open Market Committee (FOMC) meeting and inflation data are released.

However, with U.S. labor data slowing down and expectations emerging for the Federal Reserve (Fed) to slow its tightening pace, Bitcoin recovered to the $17,000 range. According to the U.S. Department of Labor, new unemployment claims last week increased by 4,000 to 230,000 compared to the previous week. Meanwhile, continuing claims for unemployment benefits, which require at least two weeks of filing, rose by 62,000 to 1.67 million. This is the highest level since early February this year, suggesting that the labor market is cooling down.

Despite the synchronized decline in the U.S. stock market on the 9th (local time), Bitcoin maintained the $17,000 level. The tech-heavy Nasdaq index closed down 77.39 points (0.7%) at 11,004.62. The Dow Jones Industrial Average fell 305.02 points (0.9%) to 33,476.46, and the large-cap S&P 500 index ended trading 29.13 points (0.73%) lower at 3,934.38. The November Producer Price Index (PPI) rose 7.4% year-over-year, a slower increase than October's 8.1%, but higher than the market expectation of 7.2%. The higher-than-expected producer prices fueled concerns about inflation and tightening.

Investor sentiment in the crypto market remained in the fear phase. According to crypto asset data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 1 point from the previous day to 27 points (fear). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating strong optimism.