[Bitcoin Now] Decline Amid Financial Crisis Spread Concerns... Investor Sentiment 'Greed'

As global financial risks spread to Europe, Bitcoin prices are showing a downward trend.

According to the global virtual asset market relay site CoinMarketCap, as of 1:25 PM on the 26th, the price of Bitcoin was recorded at $27,540 (approximately 35.8 million KRW), down 0.21% from the previous day.

Image source=Reuters·Yonhap News

With the bankruptcy of the US Silicon Valley Bank (SVB) and the liquidity crisis of Swiss investment bank Credit Suisse (CS), global financial risks emerged, drawing attention to virtual assets such as Bitcoin as a safe haven.

However, as news spread that the credit default swap (CDS) premium for Deutsche Bank had risen sharply, financial risks expanded to Europe, causing Bitcoin prices to decline. The CDS premium indicates the risk of a company's default. Nevertheless, Deutsche Bank's situation differs from that of CS, and it has strong liquidity and capital, leading to opinions that concerns are excessive. As a result, the decline in Bitcoin prices was limited. German Chancellor Olaf Scholz stated about Deutsche Bank, "It has thoroughly reorganized and modernized its business model and is a highly profitable bank," and regarding Deutsche Bank's future, he said, "There is no reason to worry."

Investor sentiment in virtual assets remained at a greed level. According to Alternative, a virtual asset data provider, the fear and greed index representing investor sentiment recorded 64 points (greed), the same as the previous day. Alternative's fear and greed index ranges from 0 points, indicating extreme fear and pessimism about investment, to near 100 points, indicating optimism.