Bitcoin Stuck in $19,000 Range Amid Austerity Fears... Investor Sentiment at 'Extreme Fear'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] As the representative cryptocurrency Bitcoin remains stuck in the $19,000 range and coin prices stagnate, investor sentiment is in a state of extreme fear.

According to cryptocurrency data provider Alternative on the 23rd, the Fear & Greed Index, which indicates investor sentiment, rose by 3 points from the previous day to 23 points (extreme fear). Alternative's Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investing, to near 100 points, indicating optimism.

Since the beginning of this month, investor sentiment has consistently recorded extreme fear levels, except for the 26 points (fear) recorded on the 6th. There were as many as six days with a score of 20 points (extreme fear).

Cryptocurrency prices have been influenced by expectations that the Federal Open Market Committee (FOMC) will implement a giant step (raising the benchmark interest rate by 0.75 percentage points at once) in November. Previously, the U.S. Consumer Price Index (CPI) for September rose 8.2% year-on-year. It increased 0.4% month-on-month, both exceeding expert forecasts. Despite the Federal Reserve (Fed) implementing three consecutive giant steps, inflation has not subsided.

The fact that Bitcoin prices remain in the $19,000 range is also having an impact. According to the global cryptocurrency market data site CoinMarketCap, Bitcoin briefly surpassed the $20,000 level on the 5th and 6th of this month but soon declined. As of 9:46 a.m. on the day, Bitcoin was priced at $19,207 (approximately 27.62 million KRW), up 0.14% from the previous day.

Despite positive factors, investment in Bitcoin has not revived. The Wall Street Journal (WSJ) reported that after the Fed’s giant step (0.75 percentage point rate hike) in November, it is expected to discuss slowing the pace of rate hikes in December. On the 21st (local time), the U.S. stock market rose by over 2% amid expectations of the Fed slowing its tightening pace. Although the U.S. stock market, which shows synchronization, closed higher, Bitcoin prices only saw a slight increase.

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