[Bitcoin Now] Below $30,000 Ahead of FOMC... Investor Sentiment 'Neutral'

The price of Bitcoin, the representative virtual asset, is weak ahead of the Federal Open Market Committee (FOMC) regular meeting.

Image source=Reuters·Yonhap News

According to CoinMarketCap, a global virtual asset market status relay site, as of 1:09 PM on the 23rd, the price of Bitcoin was recorded at $29,864 (approximately 38.49 million KRW), down 0.14% from the previous day. Until the 20th of this month, Bitcoin's price was above $30,000, but since then, it has been trading in the $29,000 range. Compared to a week ago, the price has dropped by 1.14%.

The recent decline in Bitcoin's price is due to caution ahead of the FOMC regular meeting scheduled for the 25th-26th (local time). The Federal Reserve (Fed) is expected to raise the benchmark interest rate by 0.25 percentage points at this meeting. While many experts in the market believe this rate hike will be the last, there are also forecasts that no such signals will be given at this meeting. However, there is about a 25% chance that the benchmark interest rate will be raised once more after this month.

Additionally, the price gains that had risen due to Ripple Labs, the issuer of the virtual asset Ripple, effectively winning the securities-related lawsuit against the U.S. Securities and Exchange Commission (SEC) have been given back. In December 2020, the SEC sued Ripple Labs, claiming Ripple was issued in violation of securities laws. With Ripple Labs' victory, the likelihood increased that the Commodity Futures Trading Commission (CFTC), which has relatively lighter regulations, would oversee most virtual assets, leading to a rise in virtual asset prices. On the 14th of this month, Bitcoin's price exceeded $31,000.

Investor sentiment in virtual assets showed a neutral level. According to Alternative, a virtual asset data provider, the Fear & Greed Index, which expresses investor sentiment as an index, was 54 points (neutral), up 2 points from the previous day. Compared to 57 points (greed) a week ago, it dropped by 3 points. Alternative's Fear & Greed Index means that a score closer to 0 indicates extreme fear and pessimism about investment, while a score near 100 indicates optimism.