[Bitcoin Now] Rising on FOMC Pace Adjustment Outlook... Surpasses $23,000

Up 40% Compared to Early This Year

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices are on the rise as the Federal Reserve (Fed) is expected to slow the pace of interest rate hikes at the upcoming Federal Open Market Committee (FOMC) regular meeting next week.

[Image source=Reuters·Yonhap News]

According to CoinMarketCap, a global virtual asset market tracking site, as of 1:41 PM on the 24th, the price of Bitcoin was recorded at $23,087 (approximately 28.51 million KRW), up 1.66% from the previous day. This is the first time since August 19 of last year that Bitcoin has surpassed $23,000.

Bitcoin, which was hovering around $16,500 earlier this month, has shown an increase of nearly 40% amid expectations that the Fed will slow its tightening pace. The anticipation that the Fed will narrow the rate hike to 0.25 percentage points at next week’s FOMC meeting also drove the upward trend today. Remarks from Fed officials have reinforced these expectations. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds (FF) rate futures market currently reflects over a 98% probability of a 0.25 percentage point rate hike in February. However, there are also concerns that even if the Fed halts rate hikes, it may maintain high rates for a considerable period.

The U.S. stock market, which tends to move in tandem with Bitcoin prices due to the expected slowdown, also closed higher. The tech-heavy Nasdaq index closed up 223.98 points (2.01%) at 11,364.41. The Dow Jones Industrial Average rose 254.07 points (0.76%) to 33,629.56, and the large-cap S&P 500 index ended trading 47.20 points (1.19%) higher at 4,019.81.

As coin prices rise, investor sentiment has also revived, maintaining a 'neutral' stage. According to Alternative, a virtual asset data provider, the Fear & Greed Index, which measures investor sentiment, rose 2 points from the previous day to 52 points (neutral). Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.