Ethereum also halved in 6 months
US analyst “may be pushed to the $20,000 level… Linked with Nasdaq… very unstable”
Intensifying ‘Kimchi Premium’, which is high in Korea
The virtual asset market continues to plunge as the US’ aggressive interest rate hike and concerns regarding a global economic recession shake the global financial market. After falling below the $30,000 mark, considered the psychological marginal line, for the first time in 10 months, the price of Bitcoin, the ‘big stock’, is predicted to drop to $20,000.
As the movement to withdraw investment from risky assets accelerates, the so-called ‘kimchi premium’, in which virtual assets are traded more expensively in Korea, is deepening once more.
○ Bitcoin collapses its psychological support level of $30,000
According to CoinMarketCap, a global virtual currency information site on the 10th, Bitcoin was traded at $31,826 as of 3pm on the same day. Compared to 24 hours ago, it has decreased by more than 5%. At one point during the day, it fell to the $29,961 level and gave up $30,000. It is the first time since July 21 last year ($29,526) that the Bitcoin price fell below $30,000 during the day.
Bitcoin, which hit an all-time high of $68,790 on November 10 last year, has been hit by direct hits from the Ukraine war and US interest rate hikes this year, and has plummeted by 56% from its peak.
This morning, Ethereum sank to the $2,200 level. Compared to the all-time high of $4891 in November last year, it has plummeted by more than 55%. Coins with the highest global market capitalization, such as Solana and Cardano, also fell by more than 10-20% in the past week.
On the domestic exchange Upbit, as of 3 p.m. on the same day, Bitcoin and Ethereum were traded at 42.27 million won and 3.19 million won, respectively. The kimchi premium, where the bitcoin price of domestic exchanges is higher than that of foreign exchanges, is deepening. The price gap, which was around 3% this year, widened to more than 6% this morning. Hwang Se-woon, a research fellow at the Korea Capital Market Research Institute, analyzed, “Since most of the domestic virtual asset investors are individuals, it is difficult to actively respond to the price adjustment period, and expectations for low-priced purchases are compounded.”
○ “Coin market and Nasdaq market linkage”
As the stock market recently plummeted due to a sharp increase in interest rates by the US Federal Reserve (Fed), the effect is spreading to the coin market. The Wall Street Journal (WSJ) reported that “virtual assets are synchronizing with traditional asset markets such as stocks as professional investors such as institutional investors enter the coin market.”
Some observers are predicting that the same slump in 2018 will not unfold as institutional investors have entered the market. However, there is no good news to lead the rebound of the coin market and the valuation of virtual assets is relatively uncertain, so the observation that investor churn may be accelerated compared to traditional risk assets such as stocks is gaining strength.
Jeffrey Harley, chief analyst at Oanda, a U.S. foreign exchange brokerage firm, predicted that “if risk aversion continues, Bitcoin might break past $28,000 and drop to $20,000.” Michael Novogratz, CEO of Galaxy Digital, a virtual asset manager specializing in virtual assets, said, “The price of virtual assets will trade in tandem with the NASDAQ market until it finds a new equilibrium. A big market will unfold,” he said.
Reporter Kim Ja-hyun [email protected]
- like imagelike
- sad imagesI’m so sad
- angry imagesare you mad
- I want a sequel imageI want a sequel
Article Featured ImageArticle recommendation
shared imageshare
ⓒ Dong-A Ilbo & donga.com
