Bitcoin with Limited Additional Rise... Investor Sentiment Shifts from 'Greed' to 'Neutral'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the price of the leading cryptocurrency Bitcoin remains in the $22,000 to $23,000 range, investor sentiment is also showing a neutral level. Although investor sentiment once rose to a greed level, it has maintained a neutral level as the price increase was limited.

On the 7th, the Digital Asset Fear & Greed Index by Dunamu, which operates the domestic cryptocurrency exchange Upbit, showed 53.85 (neutral). This is 5.09 points lower than 58.94 (neutral) on the 31st of last month, but 12.40 points higher compared to the 8th of last month, one month ago.

The index had reached greed levels of 63.44 and 68.00 on the 30th and 29th of last month, respectively, but as the price rise of cryptocurrencies including Bitcoin was limited, it has maintained a neutral stage. Dunamu’s Digital Asset Fear & Greed Index is classified into five levels: 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. Moving toward Extreme Fear indicates decreasing investor sentiment, while the opposite indicates increasing investor sentiment.

According to cryptocurrency data provider Alternative, the Fear & Greed Index indicating investor sentiment was 30 points (fear) on the same day. This is 1 point lower than 31 points (fear) the previous day, but 9 points lower than 39 points (fear) on the 31st of last month, a week ago. Alternative’s Fear & Greed Index means that the closer to 0 points, the more extreme pessimism investors feel about investing, and the closer to 100 points, the more optimistic they are.

On the 13th of last month, Bitcoin’s price fell to the $19,000 range but then recovered, rising to the $24,000 range on the 31st of last month. However, recently it has been weak due to concerns about the Federal Reserve’s (Fed) aggressive tightening. According to the U.S. Department of Labor’s July employment report, nonfarm payrolls increased by 528,000 last month, the largest increase in five months. Also, the unemployment rate was 3.5%, the lowest level in half a century. As employment indicators exceeded expectations, arguments that the Fed will continue aggressive tightening gained strength. According to the global cryptocurrency market tracking site CoinMarketCap, as of 3:10 PM on the same day, Bitcoin’s price was recorded at $22,994 (approximately 29.86 million KRW), down 0.88% from the previous day.

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