[Bitcoin Now] Surges 4.7% on FOMC Tailwind... Investor Sentiment Turns 'Greedy'

[Asia Economy Reporter Lee Jung-yoon] As the U.S. Federal Reserve (Fed) raised the benchmark interest rate by 0.25 percentage points at the February Federal Open Market Committee (FOMC) meeting as expected, signaling a slowdown in the pace of hikes, Bitcoin prices rose by more than 4%.

[Image source=Reuters·Yonhap News]

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 10 a.m. on the 2nd, Bitcoin was priced at $24,168 (approximately 29.47 million KRW), up 4.65% from the previous day. This upward trend has brought Bitcoin prices back to levels seen in August of last year. Ethereum, the leading altcoin, surged even higher by 6.59%, reaching $1,689 (approximately 2.06 million KRW).

Bitcoin prices rose on the 1st (local time) as the Fed raised the benchmark interest rate by 0.25 percentage points from 4.25-4.5% to 4.5-4.75% at this year’s first FOMC meeting, as expected. This followed the previous FOMC in December last year, where the rate hike was reduced to 0.5%, indicating a further slowdown in the pace of increases.

With the sharp rise in coin prices, investor sentiment recovered to the 'greed' stage. According to Alternative, a cryptocurrency data provider, the Fear & Greed Index, which measures investor sentiment, rose by 4 points from the previous day to 60 points (greed) on the same day. The Alternative Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.