[Bitcoin Now] Decline Ahead of US May CPI Release... Hovering Near $30,000

[Image source=Yonhap News]

[Asia Economy Reporter Lee Myunghwan] Bitcoin prices are falling ahead of the May Consumer Price Index (CPI) announcement scheduled for the 10th. Combined with the impact of the U.S. stock market closing lower, prices are hovering in the low $30,000 range.

According to the global cryptocurrency market tracking site CoinMarketCap as of 10:25 AM on the 9th, Bitcoin was priced at $30,282 (approximately 38.15 million KRW), down 2.16% from the previous day.

Bitcoin prices are estimated to be declining due to cautious sentiment ahead of the U.S. May CPI announcement. The May CPI is expected to rise 8.2% year-over-year, showing a slowdown in the inflation rate compared to April. However, the month-over-month increase is expected to be 0.7%, higher than April's 0.3% rise.

The decline also appears to be influenced by the Nasdaq index, which tends to move in sync with Bitcoin prices, closing lower. On the 8th (local time), the tech-heavy U.S. Nasdaq index closed at 12,086.27, down 88.96 points (0.73%) from the previous trading day. The Dow Jones Industrial Average fell 269.24 points (0.81%) to 32,910.90, and the large-cap S&P 500 index closed at 4,115.77, down 44.91 points (1.08%). The New York stock market is believed to have declined due to concerns over economic growth slowdown and inflation. The Organisation for Economic Co-operation and Development (OECD) lowered its global growth forecast for this year from 4.5% to 3.0%, a 1.5 percentage point cut, and expects growth to slow to 2.8% next year.

Cryptocurrency specialized media CoinDesk also reported that uncertainty over cryptocurrency regulations is a factor contributing to the price decline. Mark Connors, a researcher at 3iQ, a cryptocurrency asset management firm, said, "Bitcoin's fundamentals are solid, but if regulations remain unclear, it will stay within a range-bound market."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded a level of 38.08 on the day, indicating a 'Fear' stage. This is up 0.70 from 37.37 (Fear) the previous day and up 4.39 from 33.69 a week ago. 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)'. A move toward greed indicates increased buying interest among market participants, whereas a move 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.