[Bitcoin Now] Sideways Movement Ahead of FOMC Meeting...Improvement in Investor Sentiment

Image source=Reuters·Yonhap News

Bitcoin prices are showing a sideways trend ahead of next week's Federal Open Market Committee (FOMC) regular meeting.

According to CoinMarketCap, a global virtual asset market data relay site, as of 4:42 PM on the 17th, the price of Bitcoin was recorded at $26,545 (approximately 35.33 million KRW), up 0.19% from the previous day.

Bitcoin prices, which had maintained the $25,800 range just a week ago, rose after digesting the US August Consumer Price Index (CPI). The August CPI rose 3.7% compared to the same period last year, surpassing the previous month's 3.2% increase. This was higher than the market expectation of 3.6%, driven by rising oil prices. However, the August core CPI, which excludes the highly volatile food and energy sectors, rose 4.3% compared to the same period last year, significantly slowing from the previous month's 4.7% increase. The 4.3% rise is the lowest level in 22 months and met market expectations.

However, other economic indicators mostly showed stronger-than-expected results, which is interpreted as the price remaining in a consolidation range. US industrial production rose 0.4% from the previous month, slowing from the 0.7% increase recorded the previous month but exceeding the market expectation of a 0.2% rise. Meanwhile, the University of Michigan Consumer Sentiment Index was 67.7, below the previous month's 69.5 and the market expectation of 69.2. The 1-year expected inflation rate fell to 3.1% from 3.5% the previous month, and the 5-year expected inflation rate dropped to 2.7% from 3.0% the previous month. Nevertheless, concerns are growing that inflationary pressures could persist due to the recent strength in oil prices.

Investor sentiment in virtual assets has slightly improved. According to data from Alternative, a virtual asset data provider, the Fear & Greed Index, which expresses investor sentiment as an index, rose 3 points from the previous day to 46 points (fear). Compared to 40 points a week ago, it increased by 6 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.