[Bitcoin Now] US Stock Market Plummets 8%... Investor Sentiment 'Extreme Fear'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices, which had risen due to reduced uncertainty following the U.S. Federal Reserve's (Fed) interest rate hike, plunged as the Nasdaq index, showing a synchronized movement, fell.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:03 a.m. on the 17th, the price of Bitcoin was recorded at $20,906 (approximately 26.96 million KRW), down 8.22% from the previous day.

Bitcoin prices declined as the U.S. stock market closed lower. On the 16th (local time), the tech-heavy Nasdaq index closed at 16,406.10, down 453.06 points (4.08%), the Dow Jones Industrial Average fell 741.46 points (2.42%) to 29,927.07, and the large-cap S&P 500 index recorded 3,666.77, down 123.22 points (3.25%). After the Fed's decision to implement a giant step (a 0.75 percentage point rate hike), uncertainty was alleviated, leading to gains in both the U.S. stock market and Bitcoin prices. However, the relief rally turned into a sharp decline within a day due to renewed fears of an economic recession.

Alex Kupshikevich, Senior Market Analyst at FxPro, explained, "Until there are signals that the economic slowdown has stopped, the likelihood of a stable rebound in risk assets and cryptocurrencies in the financial market is low, so investors need to be prepared."

Meanwhile, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, recorded 14.71 on the day, indicating a 'Extreme Fear' stage. This is a drop of 19.36 from 34.07 on the 10th of this month, a week earlier. 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 by market participants, whereas moving towards fear indicates 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.