[Bitcoin Now] US Stock Market Plunge Hits This Year's Low... Falls to $30,000 Range

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Due to the sharp decline in the U.S. stock market, the price of the leading cryptocurrency Bitcoin has hit its lowest level this year.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 10:46 a.m. on the 10th, the price of Bitcoin was $30,841 (approximately 39.43 million KRW), down 9.64% from the previous day. This is the lowest level since July last year.

Bitcoin prices have been weak as the U.S. stock market plunged amid concerns over the Federal Reserve's (Fed) interest rate hikes and fears of an economic recession. On the 9th (local time), the Dow Jones Industrial Average fell 1.99% (653.67 points) to 32,245.70. The S&P 500 index dropped 3.20% (132.10 points) to 3,991.24, and the tech-heavy Nasdaq index closed down 4.29% (521.41 points) at 11,623.25.

Cryptocurrency specialized media CoinDesk explained, "Due to the Fed's aggressive tightening policy and recession concerns, selling pressure continued in both the stock and cryptocurrency markets." CoinDesk also predicted that Bitcoin prices could fall to $29,000. U.S. economic media CNBC reported, "The close correlation between Bitcoin and the Nasdaq index challenges the claim that cryptocurrencies serve as an inflation hedge."

Investor sentiment also weakened. Dunamu, which operates the domestic cryptocurrency exchange Upbit, reported its Digital Asset Fear & Greed Index at 24.24 on the day, indicating a 'Fear' stage. Compared to 45.88 (Neutral) on the 3rd of this month, a week earlier, it dropped by 21.64 points. Dunamu's Digital Asset Fear & Greed Index is divided into stages: '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 among market participants, whereas moving toward fear reflects a fear of asset decline, leading to market exits and a chain reaction of price drops.

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