[Bitcoin Now] Impact of Tightening Concerns Pushes Price to $30,000 Range... Investor Sentiment Also 'Wavers'

As concerns over tightening persist, the price of Bitcoin, the representative virtual asset, remains in the $30,000 range.

Image source=Reuters·Yonhap News

According to the global virtual asset market tracking site CoinMarketCap at 12:56 PM on the 9th, the price of Bitcoin was recorded at $30,302 (approximately 39.48 million KRW), up 0.06% from the previous day. Although it surpassed $31,000 on the 4th and 6th, it subsequently declined and dropped to the $29,000 range on the 7th.

Bitcoin prices are weak due to concerns over tightening. The minutes of the June Federal Open Market Committee (FOMC) reaffirmed the stance of additional rate hikes this year. The U.S. Federal Reserve (Fed) stated that "'almost all' participants mentioned that it would be appropriate to raise the federal funds rate further in 2023 in their economic outlook."

Most members preferred to keep rates unchanged at the June FOMC meeting, but some supported a 0.25% rate hike. Those advocating for the increase pointed out that "the labor market is very tight, economic activity momentum is stronger than previously expected, and there are few clear signs that inflation is returning to the Fed's 2% target." In this context, according to the ADP National Employment Report, private sector employment in June increased by 497,000 compared to the previous month, more than double the expert forecast of 220,000.

However, although U.S. nonfarm payrolls increased by 209,000 in June, falling short of the expert forecast of 240,000, the market viewed this as insufficient to halt the Fed's stance on further rate hikes. Additionally, despite the slowdown in employment, the unemployment rate in June fell to 3.6% from 3.7% in the previous month. Average hourly wages rose 0.36% from the previous month and increased 4.35% year-over-year, slightly exceeding market expectations of 0.3% and 4.2%, respectively. The Fed considers an employment increase of about 100,000 sufficient to curb inflation. It also hopes wage growth will slow to around 2% to 3%, near the inflation target range.

Investor sentiment in virtual assets has also deteriorated. According to the virtual asset data provider Alternative, the Fear & Greed Index, which measures investment sentiment, dropped 3 points from the previous day to 55 (Greed). Compared to 63 (Greed) a week ago, it fell by 8 points. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating strong optimism.