[Bitcoin Now] Rises 3.9% on Expectations of US Interest Rate Hike Pause

Bitcoin prices are on the rise as expectations grow for the U.S. Federal Reserve (Fed) to pause its benchmark interest rate hikes.

Image source=Reuters·Yonhap News

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:26 a.m. on the 30th, the price of Bitcoin was recorded at $28,360 (approximately 37.04 million KRW), up 3.89% from the previous day.

Bitcoin prices are rising as risk asset investment sentiment recovers. The market is anticipating a Fed rate hike within the year. Michael Barr, Vice Chair for Supervision at the Fed, stated regarding monetary policy, "Interest rates will be decided at each meeting, and incoming data and financial conditions will be reviewed."

The U.S. stock market, which tends to move in tandem, also closed higher. The tech-heavy Nasdaq index ended the day at 11,926.24, up 210.16 points (1.79%). The Dow Jones Industrial Average rose 323.35 points (1.0%) to 32,717.60, and the large-cap S&P 500 index closed at 4,027.81, up 56.54 points (1.42%).

Additionally, the expectation that Ripple will win the lawsuit against the U.S. Securities and Exchange Commission (SEC) is also credited with driving the price increase. The key issue in the lawsuit is whether Ripple is a security; if Ripple wins, it is likely that the U.S. Commodity Futures Trading Commission (CFTC) will oversee most cryptocurrencies. This is expected to result in lighter regulations compared to SEC jurisdiction, which analysts say could lead to a rise in cryptocurrency prices.

Meanwhile, according to the cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose by 3 points from the previous day to 60 points (Greed) on the same day. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.