[Bitcoin Now] Plunges to $38,000 Amid Economic Slowdown Concerns

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Due to concerns over economic slowdown, the price of the representative cryptocurrency Bitcoin plummeted.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:06 AM on the 27th, the price of Bitcoin was $38,206 (approximately 48.27 million KRW), down 5.81% compared to the previous day.

The price of Bitcoin has been declining as the US stock market closed lower amid concerns over economic slowdown caused by corporate earnings in the first quarter of this year and China’s COVID-19 lockdowns. The Nasdaq index, which is technology stock-centered and shows a correlation with Bitcoin prices, closed at 12,490.74, down 514.11 points (3.95%) on the 26th (local time). The Dow Jones Industrial Average fell 809.28 points (2.38%) to 33,240.18, and the large-cap S&P 500 index closed at 4,175.20, down 120.92 points (2.81%).

Additionally, the Ukraine crisis is also analyzed to have driven the decline in Bitcoin prices. Edward Moya, senior market analyst at global investment firm OANDA, explained, "When news broke that Russia cut gas supplies to Poland, Bitcoin gave back its gains," adding, "This indicates that the war in Ukraine could escalate further."

He also said, "Bitcoin had a good start following news that Fidelity would offer Bitcoin investments in personal retirement accounts," but added, "Investor risk aversion returned due to concerns over the Federal Reserve’s aggressive tightening policies, worsening Russia-Ukraine war, and disappointment that Bitcoin is not being properly used as legal tender in El Salvador." Earlier, US retirement asset management firm Fidelity launched a new product allowing Bitcoin investments within 20% of retirement accounts.

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 44.12 on the day, indicating a 'neutral' stage. Compared to 42.87 (neutral) the previous day, it rose by 1.25, but compared to 49.17 (neutral) on the 20th of this month, it fell by 5.05. Dunamu’s Digital Asset Fear & Greed Index is divided into 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction indicates increased interest in buying by market participants, whereas moving toward fear indicates a chain reaction of price declines as investors exit the market due to fear of asset depreciation.

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