[Bitcoin Now] 2% Decline as Tightening and Recession Fears Spread

[Image source=Reuters·Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As concerns over an economic recession continue amid interest rate hikes, the price of Bitcoin, a leading cryptocurrency, fell by nearly 2%.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 9:45 a.m. on the 20th, the price of Bitcoin was recorded at $16,493 (approximately 21.48 million KRW), down 1.96% from the previous day.

The decline in Bitcoin’s price is attributed to the synchronized drop in the U.S. stock market, which closed lower due to the Federal Reserve’s planned interest rate hikes next year and recession concerns. On the 19th (local time), the Dow Jones Industrial Average fell 162.92 points (0.49%) to 32,757.54, the large-cap-focused S&P 500 index closed down 34.70 points (0.90%) at 3,817.66, and the tech-heavy Nasdaq index ended trading down 159.38 points (1.49%) at 15,430.3.

Additionally, Meta, Facebook’s parent company, dropped more than 4% following preliminary antitrust violation opinions from the European Union (EU), and Amazon fell 3.35% amid claims that its earnings growth is slowing, which also appeared to have an impact.

Meanwhile, according to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, remained at 29 points (fear) as it was the previous day. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.