[Bitcoin Now] Despite Rising Treasury Yields, 11% Increase Over the Week... $30,000 'Within Reach'

Image source=Reuters·Yonhap News

Despite concerns about tightening, the price of the leading cryptocurrency Bitcoin is on the rise.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 12:53 PM on the 22nd, the price of Bitcoin was recorded at $29,922 (approximately 40.48 million KRW), up 1.01% from the previous day. Compared to a week ago, it has risen 11.28%.

Although concerns about tightening have increased, with the 10-year U.S. Treasury yield briefly surpassing 5%, the highest level since 2007, Bitcoin prices have recently been on an upward trend. This strength is primarily influenced by expectations for the approval of a Bitcoin spot exchange-traded fund (ETF). On the 16th, a cryptocurrency-focused media outlet reported that the U.S. Securities and Exchange Commission (SEC) had approved BlackRock’s application for a Bitcoin spot ETF, but it was later revealed to be false. At the time of the report, Bitcoin’s price surged from around 37 million KRW to over 40 million KRW and has maintained its level despite the correction. Market expectations for the approval of a Bitcoin spot ETF continue to persist. If a Bitcoin spot ETF is approved, it would not only integrate cryptocurrencies into the regulatory framework but also require large-scale Bitcoin purchases to manage the ETF products, which is expected to improve investor sentiment.

Additionally, cryptocurrencies have been gaining attention as safe-haven assets amid conflicts in the Middle East, and the SEC’s dismissal of the lawsuit against the management of Ripple is also seen as positive news. Previously, the SEC filed a lawsuit against Ripple Labs, the issuer of Ripple, for violating securities laws by selling unregistered securities. Although the dismissal of this lawsuit is not expected to affect the lawsuit against Ripple Labs itself, the market has interpreted it as a favorable development.

Cryptocurrency investor sentiment is currently at a neutral stage. According to data from the cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, dropped 10 points from 63 (greed) the previous day to 53 (neutral). Compared to 45 (fear) a week ago, it has risen by 8 points. Alternative’s Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.