[Bitcoin Now] Withstanding Negative Factors, Holding at $28,000 Level... Investor Sentiment 'Greed'

Bitcoin prices, which had been declining due to negative news surrounding the largest cryptocurrency exchange Binance, have recovered to the $28,000 range. Cryptocurrency investor sentiment also remained at a greed level.

Image source=Reuters·Yonhap News

According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:46 PM on the 2nd, Bitcoin was priced at $28,431 (approximately 37.24 million KRW), down 0.57% from the previous day.

Until the 28th of last month, Bitcoin prices had fallen to the $26,000 range, showing a bearish trend. This was due to U.S. regulators filing a complaint in the Chicago federal court against Binance and Binance CEO Zhao Changpeng for violating regulations related to derivatives and other products. The U.S. Commodity Futures Trading Commission (CFTC) determined that Binance failed to register as an institution when brokering commodity trades for Americans, which is mandatory. They also found that Binance did not properly implement customer verification systems, anti-money laundering processes, and tax evasion prevention programs.

Following the U.S. Securities and Exchange Commission (SEC), the CFTC also began imposing sanctions on the cryptocurrency market, increasing investor concerns. Previously, the SEC had accused the exchange Kraken’s staking service and Binance’s stablecoin BUSD of violating securities laws.

However, despite these negative factors, Bitcoin prices rose due to expectations that the U.S. Federal Reserve (Fed) would pause interest rate hikes and news that inflation indicators had slowed more than expected. According to data from the U.S. Department of Commerce, the core Personal Consumption Expenditures (PCE) price index for February, excluding volatile energy and food prices, rose 4.6% compared to the same period last year. This was a slowdown compared to experts’ forecasts and January’s 4.7% increase. The core PCE price index rose 0.3% month-over-month, which was slower than the market expectation of 0.4% and January’s 0.5% increase. The headline February PCE price index increased 5.0% year-over-year, down from January’s 5.3%, and rose 0.3% month-over-month, a decrease from January’s 0.6%.

Additionally, the expectation that Ripple will win its lawsuit against the SEC also contributed to the price increase. The key issue in the lawsuit is whether Ripple’s tokens are securities. If Ripple wins, it is likely that the CFTC will oversee most cryptocurrencies. This is expected to result in lighter regulations compared to SEC jurisdiction, which could lead to a rise in cryptocurrency prices.

Cryptocurrency investor sentiment remained at a greed level. According to the cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, rose 2 points from the previous day to 63 points (greed) on this day. It had dropped to 57 points (greed) on the 29th of last month but rebounded afterward. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating extreme optimism.