[Bitcoin Now] 3% Rise on Lower-than-Expected US CPI... Investor Sentiment Also 'Recovering'

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The price of Bitcoin, the representative virtual asset, surged over 3% as the increase in the U.S. Consumer Price Index (CPI) for November slowed more than expected.

According to the global virtual asset market tracking site CoinMarketCap, as of 11:27 a.m. on the 14th, the price of Bitcoin was recorded at $17,769 (approximately 23.08 million KRW), up 3.69% from the previous day. At the same time, Ethereum, the leading altcoin, rose 4.14% to $1,319 (approximately 1.71 million KRW).

Bitcoin prices rose as the November CPI increased by 7.1% year-on-year, falling short of the forecasted 7.3%. The November CPI increase was the lowest since December last year. With inflation weakening further, expectations grew that the Federal Reserve (Fed) would slow the pace of tightening going forward. At the Fed's December Federal Open Market Committee (FOMC) regular meeting, there is a possibility of a big step increase of 0.5 percentage points in the benchmark interest rate, followed by a baby step (0.25 percentage point increase) in February next year.

The U.S. stock market, which shows synchronization, also closed higher. The Nasdaq index, centered on technology stocks, closed at 11,256.81, up 113.08 points (1.01%). The Dow Jones Industrial Average rose 103.60 points (0.30%) to 34,108.64, and the large-cap S&P 500 index ended trading at 4,019.65, up 29.09 points (0.73%).

Investor sentiment revived due to the rise in coin prices. According to the virtual asset data provider Alternative, the Fear & Greed Index, which indicates investor sentiment as an index, rose 3 points from the previous day to 30 points (fear). Alternative's Fear & Greed Index means that the closer to 0 points, the more extreme fear and pessimism investors feel about investing, while the closer to 100 points, the more optimistic they are.