[Bitcoin Now] Rebounds with US Stock Market Rise... Returns to $17,000 Level

by Lee Myeonghwan

Published 09 Dec.2022 11:43(KST)

Updated 06 Mar.2023 17:56(KST)

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[Image source=Reuters Yonhap News]

[Asia Economy Reporter Myunghwan Lee] Bitcoin prices are on the rise as the U.S. stock market rebounds after six consecutive trading days of decline.

According to the global cryptocurrency market tracking site CoinMarketCap, as of 11:40 a.m. on the 9th, the price of Bitcoin was recorded at $17,230 (approximately 22.5 million KRW), up 2.32% from the previous day.

The increase in Bitcoin prices appears to be influenced by the rebound in the U.S. stock market, which shows a synchronized movement. On the 8th (local time), the Nasdaq index, centered on technology stocks, closed at 11,082.00, up 1.13% (123.45 points) from the previous trading day in the New York stock market. The Dow Jones Industrial Average rose 0.55% (183.56 points) to 33,781.48, and the S&P 500 index closed up 0.75% (29.59 points) at 3,963.51.

The New York stock market closed higher due to a rebound buying spree amid perceptions that the recent decline was excessive. On this day, the S&P 500 index reversed to an increase after six trading days, and the Nasdaq index also rose for the first time in five trading days.

Experts have diagnosed the possibility of capital inflow into the cryptocurrency market. J.J. Kinahan, CEO of IG North America, stated, "There is standby capital ready to enter the market as investors overcome the crisis of confidence." He added, "We will observe whether investors return to cryptocurrencies during the remainder of this year or reinvest next year."

Investor sentiment in cryptocurrencies has slightly eased. According to the cryptocurrency data provider Alternative, the Fear & Greed Index, which expresses investment sentiment as an index, rose by 1 point from the previous day to 26 points (fear) on this day. Alternative’s Fear & Greed Index ranges from 0 points, indicating extreme fear and pessimism about investment, to near 100 points, indicating optimism.