[Bitcoin Now] Down 0.7% on Rate Hike Possibility... Investor Sentiment 'Neutral'

Jerome Powell, Chairman of the U.S. Federal Reserve (Fed), made hawkish remarks, causing the price of the leading cryptocurrency Bitcoin to decline.

Image source=Reuters·Yonhap News

According to the global cryptocurrency market tracking site CoinMarketCap, as of 9:29 a.m. on the 8th, the price of Bitcoin was recorded at $22,254 (approximately 29.31 million KRW), down 0.70% from the previous day.

The price of Bitcoin fell following Powell's hawkish comments during his appearance at the Senate Banking Committee hearing. Powell stated, "Recent economic indicators have all come in stronger than expected," adding, "This suggests that the terminal interest rate level may be higher than previously anticipated." He further said, "If the overall data calls for faster tightening, we are prepared to increase the pace of rate hikes."

These remarks were interpreted as leaving open the possibility of a big step (a 0.5 percentage point increase in the benchmark interest rate) at the Federal Open Market Committee (FOMC) meeting scheduled for the 21st and 22nd.

The U.S. stock market, which shows correlation with cryptocurrencies, also closed lower. On the 7th (local time), the Nasdaq index closed at 11,530.33, down 145.41 points (1.25%). The Dow Jones Industrial Average fell 574.98 points (1.72%) to 32,856.46, and the Standard & Poor's (S&P) 500 index dropped 62.05 points (1.53%) to 3,986.37.

Meanwhile, cryptocurrency investor sentiment slightly improved compared to the previous day. According to cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 1 point to 50 (neutral) from the previous day. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.