Bitcoin.  (Source = Reuters Union)

Cryptocurrency fear and greed index entered ‘extreme fear’… Bitcoin under $40,000

Bitcoin. (Source = Reuters Union)

Bitcoin price continued to move sideways around $39,000 over the weekend. This is because investor sentiment has shrunk after the hawkish remarks of US Federal Reserve Chairman Jerome Powell on April 21 (local time) (local time). The fear and greed index, which stands for investor sentiment, also pointed to ‘extreme fear’.

According to CoinMarketCap, a cryptocurrency market information site, as of 10:50 am on the 25th, the price of 1 BTC (Bitcoin) was $38,945.41, down 1.8% from 24 hours ago. Compared to the high of $42,878.45 on Thursday, before Chairman Powell’s remarks, it is down 9.4%. On the Korean cryptocurrency exchange Bithumb, as of 10:50 am on the same day, 1 BTC was trading at 49,284,000 won, down 1.2% from 24 hours ago.

On April 21, Chairman Powell attended a meeting hosted by the International Monetary Fund (IMF) and predicted a “big step” rate hike in May, saying that the current inflation rate in the US is nearly three times the Fed’s target (2%). A big step means a 50bp increase, which is twice the normal rate of change of the base rate of 25bp (1bp = 0.01% point). According to Chairman Powell’s hawkish remarks, the prices of the New York Stock Exchange and cryptocurrencies, which are classified as risky assets, fell all at once from the 21st, leading to a ‘black weekend (down all weekend)’ jinx. The bitcoin price has been a bear market and has been plagued by jinxes that keep falling as the weekend kicks in.

CoinDesk, an American block chain and cryptocurrency media, presented an analysis that could break through the lower bound of the box on the grounds that there are no factors that increase the bitcoin price. There were also voices of warning about new investment. It is analyzed that the sales volume increased compared to the purchase volume and the trading volume decreased significantly, resulting in weak stability. In the short term, the media set $37,500 as the Bitcoin price support level.

Altcoins were also on the decline. Ethereum, the largest altcoin, is trading at $2864.28 per 1 ETH (Ethereum unit), down 2.37% from 24 hours ago, and Ripple (XRP) and Solana (SOL) also fell 3.84% and 3.4%, respectively.

On this day, the ‘Crypto Fear and Greed Index’ estimated by ‘Alternative’, a cryptocurrency data provider, was 24 points. In terms of investor sentiment, it means ‘extreme fear’. The index closer to 0 indicates extreme fear in the market, and closer to 100 indicates extreme optimism.

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