[Bitcoin Now] Despite US Stock Market Rise, Stays in $16,000 Range... 'Extreme Fear'

[Asia Economy Reporter Lee Jung-yoon] Bitcoin prices showed an upward trend due to the rally in the U.S. stock market but remain stuck in the $16,000 range.

Image source=Reuters·Yonhap News

According to the global virtual asset market status relay site CoinMarketCap as of 1:40 PM on the 8th, the price of Bitcoin was recorded at $16,944 (approximately 21.35 million KRW), down 0.01% from the previous day.

Bitcoin prices, which had been sideways this week, showed an upward trend as the U.S. stock market closed higher on the 6th (local time). The Nasdaq index, centered on tech stocks, closed at 15,069.29, up 264.05 points (2.56%). The S&P 500 index, focused on large-cap stocks, ended at 3,895.08, up 86.98 points (2.28%), and the Dow Jones Industrial Average closed at 33,630.61, up 700.53 points (2.13%) from the previous session.

The easing of inflation concerns due to a slowdown in U.S. wage growth had an impact. According to the U.S. Department of Labor, nonfarm payrolls increased by 223,000 last month, a decrease from the previous month's increase of 256,000. However, it still exceeded the market forecast of 200,000. Wage growth slowed, with the average hourly wage in December rising 0.3% from the previous month and 4.6% year-over-year. The initial market forecasts were 0.4% and 5.0%, respectively, which were missed. The year-over-year wage growth rate slowed to the lowest level since the summer of 2021.

However, despite these indicators, the Federal Reserve (Fed) is expected to maintain its tightening policy, preventing further rises in Bitcoin prices. This is because, although wage growth has slowed, the overall labor market remains overheated.

Investor sentiment in virtual assets also weakened. According to the virtual asset data provider Alternative, the Fear & Greed Index, which expresses investment sentiment as an index, recorded 25 points (extreme fear), the same as the previous day. Until the 6th, it was in the fear stage, but from the previous day, it showed extreme fear. Alternative's Fear & Greed Index means that the closer the score is to 0, the more pessimistic investors feel, indicating extreme fear, and the closer it is to 100, the more optimistic they are about investment.

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