Coin Investment Sentiment Remains in 'Extreme Fear' Amid Austerity Expectations

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Cryptocurrency investor sentiment is in a state of extreme fear as concerns over tightening continue.

According to cryptocurrency data provider Alternative on the 9th, the Fear & Greed Index, which indicates investor sentiment, dropped 2 points from the previous day to 22 points (extreme fear). Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.

Investor sentiment recorded 20 points (extreme fear) on the 1st of this month and rose to 26 points (fear). However, it subsequently worsened and plunged back into extreme fear.

Recently, investor sentiment has been shrinking due to strengthened expectations of tightening by the Federal Reserve (Fed). According to the U.S. Department of Labor, the unemployment rate fell to 3.5% in September this year, reaching the lowest level in about 50 years. This has strengthened expectations that the Fed will implement aggressive tightening. Employment indicators were favorable enough to show the lowest unemployment rate in 50 years. If the Fed raises the benchmark interest rate by 0.75 percentage points next month, it will be the fourth consecutive giant step (a 0.75 percentage point increase in the benchmark interest rate).

Additionally, the weak performance of the representative cryptocurrency Bitcoin is also affecting investor sentiment. According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:57 PM on the day, Bitcoin's price was $19,376 (approximately 27.61 million KRW), down 0.43% from the previous day. Although it recovered to the $20,000 range on the 6th of this month, concerns over tightening caused it to fall back to the $19,000 range.

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