[Bitcoin Now] Plunges to $23,000 Amid Tightening Concerns... 'Greed' to 'Neutral'
Concerns over tightening by the U.S. Federal Reserve (Fed) have caused the price of the leading cryptocurrency Bitcoin to fall to the $23,000 range.
According to the global cryptocurrency market tracking site CoinMarketCap, as of 1:35 PM on the 26th, the price of Bitcoin was recorded at $23,212 (approximately 30.59 million KRW), up 0.48% from the previous day.
Bitcoin's price had maintained the $25,000 range until the 21st. However, as concerns over Fed tightening intensified, it began to decline. The January Personal Consumption Expenditures (PCE) price index, a preferred inflation indicator of the Fed, exceeded expectations. It rose 0.6% month-over-month and 5.4% year-over-year. The core PCE, which excludes volatile energy and food prices, also increased 4.7% year-over-year, surpassing the market forecast of 4.4%. This is even higher than the previous month's revised figure of 4.6%.
Additionally, the International Monetary Fund (IMF) urged countries not to grant legal tender status to cryptocurrencies, which also contributed to the price decline. The IMF released 'Effective Policy Elements Related to Crypto Assets,' which included recommendations that countries strengthen their monetary policy frameworks to protect monetary sovereignty and stability and that cryptocurrencies should not be granted legal tender or official currency status.
Due to these negative factors, Bitcoin's price dropped to the $23,800 range on the 24th and showed weakness with a decline of about $600 in a single day the previous day. On this day, it even briefly plunged to the $22,000 range.
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Cryptocurrency investor sentiment remained neutral. According to the cryptocurrency data provider Alternative, the Fear & Greed Index, which measures investor sentiment, recorded 51 points (neutral), down 1 point from the previous day. Compared to 60 points (fear) recorded a week earlier on the 19th, investor sentiment has continued to deteriorate. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investing, to 100, indicating optimism.
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