[Bitcoin Now] Still Sideways Around $29,000... Investor Sentiment 'Neutral'

The price of Bitcoin, the representative virtual asset, is consolidating as analyses suggest that the inflation slowdown trend needs to be observed a bit longer.

Image source=Reuters·Yonhap News

According to CoinMarketCap, a global virtual asset market tracking site, as of 12:33 PM on the 13th, the price of Bitcoin was recorded at $29,399 (approximately 39.16 million KRW), up 0.09% from the previous day. Bitcoin's price fell to the $28,000 range on the 8th but surpassed $30,000 on the 9th. However, it has since weakened and is consolidating between $29,300 and $29,400.

Although U.S. inflation is trending downward, some argue that it needs to be monitored a bit longer, preventing Bitcoin's price from rebounding. The U.S. Consumer Price Index (CPI) for July rose 3.2% compared to the same period last year, higher than June's 3.0% increase but lower than the market expectation of 3.3%. The core CPI rose 4.7% year-over-year, slowing from June's 4.8% increase and also below market expectations.

Nevertheless, this argument arose as the July Producer Price Index (PPI) exceeded expectations. The July PPI shifted from June's flat level to a 0.3% increase, surpassing the expert forecast of a 0.2% rise. In particular, service costs rose 0.5% from the previous month, marking the largest increase since August 2022. Meanwhile, goods prices fell by 0.1%. The U.S. PPI fell 0.3% in May, was flat in June, and rose 0.3% again in July. The July PPI increased 0.8% year-over-year. Additionally, concerns have grown that inflation in August may not slow as quickly as expected due to recent oil prices reaching yearly highs.

Meanwhile, virtual asset investor sentiment remained neutral. According to Alternative, a virtual asset data provider, the Fear & Greed Index, which expresses investor sentiment as an index, remained at 54 points (neutral), the same as the previous day. Compared to 49 points (neutral) a week ago, it rose by 5 points. Alternative's Fear & Greed Index ranges from 0, indicating extreme fear and pessimism about investment, to 100, indicating optimism.

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