[Bitcoin Now] Surpassing 60 Million Won as Fed Uncertainty Eases

Dunamu Digital Asset Fear and Greed Index Also 'Neutral'... Alleviating Investor Anxiety

[Image source=Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin is trading above 60 million KRW. Despite the Federal Open Market Committee (FOMC) announcing an early end to the Federal Reserve's (Fed) asset purchase tapering and interest rate hikes, the market uncertainty appears to have been resolved as the announcements did not significantly deviate from market expectations.

According to the domestic cryptocurrency exchange Upbit, as of 2:43 PM on the 16th, Bitcoin was recorded at 60.64 million KRW, down 0.90% compared to the previous day. It had fallen to 57.34 million KRW on the 14th but has since rebounded.

The resolution of Fed-related uncertainties seems to have a positive impact on the cryptocurrency market. On the 15th (local time), following the FOMC meeting held from the 14th to 15th, the Fed decided to maintain the current benchmark interest rate at 0.00?0.25%. Additionally, it plans to accelerate the tapering process to complete it by March next year and expects to raise the benchmark interest rate three times in the coming year.

Recently, Bitcoin had shown a volatile trend due to uncertainties related to the Fed. Predictions that the Fed might adopt a more hawkish stance than expected raised concerns that liquidity, which positively influenced cryptocurrency price increases, could be reduced. A hawkish stance refers to tightening policies such as interest rate hikes when the economy shows signs of overheating. When Fed Chair Jerome Powell emphasized the inflation threat and mentioned accelerating tapering, Bitcoin plunged 8.59% on the 4th.

Meanwhile, the Dunamu Digital Asset Fear and Greed Index, which indicates investor sentiment, stood at 41.99, signaling a neutral state. Neutral represents a middle ground between the ‘fear’ phase, where investors worry about a crash, and the ‘greed’ phase, where a sharp rise is expected, and is positioned between 40 and 60 on the Digital Asset Fear and Greed Index. On the 14th, when Bitcoin fell below 60 million KRW, the index was 37.67, indicating a ‘fear’ phase.

This content was produced with the assistance of AI translation services.