[Bitcoin Now] Slight Rise Above $23,000... Persistent Tightening Concerns

[Asia Economy Reporter Lee Jung-yoon] Bitcoin's upward momentum faltered as concerns over tightening intensified due to strong employment indicators.

According to CoinMarketCap, a global virtual asset market tracking site, as of 3:43 PM on the 5th, the price of Bitcoin was recorded at $23,411 (approximately 29.29 million KRW), up 0.33% from the previous day.

[Image source=Reuters·Yonhap News]

As expected on the 1st (local time), the U.S. Federal Reserve (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 Federal Open Market Committee (FOMC) meeting, causing Bitcoin to rise. On the 2nd and 3rd, it surged to $24,000.

However, although the U.S. wage growth rate in January slowed compared to the previous month, strong employment indicators were still confirmed. This dampened expectations that the Fed would soon halt interest rate hikes. Nonfarm payrolls increased by 517,000 in January, surpassing the market estimate of 187,000. The unemployment rate in January was 3.4%, lower than the previous month's 3.5%, marking the lowest level since May 1969. Average hourly wages in January rose 0.3% month-over-month and 4.4% year-over-year.

On the 3rd (local time), U.S. stock markets all fell. The Nasdaq index, which is tech stock-centered and correlates with Bitcoin prices, closed down 193.86 points (1.59%) at 12,006.95. The Dow Jones Industrial Average dropped 127.93 points (0.38%) to 33,926.01, and the large-cap S&P 500 index fell 43.28 points (1.04%) to 4,136.48.

Meanwhile, according to Alternative, a virtual asset data provider, the Fear & Greed Index representing investor sentiment was 58 points (Greed), the same as the previous day. It recorded 60 points (Greed) on the 2nd and 3rd but slightly declined. Due to Bitcoin's price increase, Alternative's Fear & Greed Index indicates that a score closer to 0 reflects extreme fear and pessimism about investment, while a score near 100 indicates optimism.