[Bitcoin Now] Rising on Interest Rate Cut and Spot ETF Approval Expectations... Surpasses $39,000

Image source=Reuters·Yonhap News

Bitcoin prices rose to the $39,000 range due to expectations of interest rate cuts and the launch of a Bitcoin spot exchange-traded fund (ETF).

According to CoinMarketCap, a global virtual asset market tracking site, as of 2:46 PM on the 3rd, Bitcoin was priced at $39,446 (approximately 51.24 million KRW), up 1.64% from the previous day. Compared to prices one week and one month ago, it increased by 4.43% and 14.52%, respectively, recovering to the price level of May last year.

The rise in Bitcoin prices is attributed to expectations of interest rate cuts. Jerome Powell, Chair of the Federal Reserve (Fed), said during a conversation with Helen Gail, President of Spellman College, on the 1st (local time), "It is too early to confidently conclude that we have achieved a sufficiently restrictive stance, nor to forecast when policy will be eased."

However, he also mentioned, "We are prepared to tighten policy further if we judge it appropriate," leaving the possibility of additional tightening open. Although Powell made balanced remarks to slow down the market's expectations of rate cuts, the market interpreted them as dovish. There is little indication within the Fed to halt interest rate hikes.

Additionally, the market expects that the U.S. Securities and Exchange Commission (SEC) will approve a Bitcoin spot ETF around January next year. If approval materializes, Bitcoin prices are expected to rise to the $48,000 range.

Investor sentiment in virtual assets recorded a level of greed. According to data from Alternative, a virtual asset data provider, the Fear & Greed Index, which measures investor sentiment, dropped by 1 point from the previous day, recording (Greed). This is the same as the 73 points (Greed) recorded a week ago. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.