Bitcoin collapses below $90,000, gold threatened around $4,000

Major asset prices fall together

Altcoins such as Ethereum also weak

Due to reduced expectations of additional rate cuts

Bitcoin prices fell to their lowest levels in seven months in domestic and international markets. The price of gold, considered a representative safe-haven asset, is also faltering. As expectations for further rate cuts have diminished and "AI bubble" concerns have spread, analysts say the "everything rally" that had lifted major asset prices together has been halted.

On the 18th, according to CoinMarketCap, Bitcoin's price was $89,427 as of 2 p.m., down more than 5% from 24 hours earlier. It is the first time since April — seven months — that Bitcoin has fallen below the $90,000 level after surpassing $120,000 in early last month. Other major cryptocurrencies such as Ethereum, XRP and Solana are also failing to hold gains.

In the domestic market, Bitcoin also broke below the 140,000,000-won level. According to Upbit, as of 2 p.m. it was trading at 133,560,000 won, down 3.01% from 24 hours earlier. The decline steepened after falling below 140,000,000 won on the 17th. It is the first time since April that Bitcoin's price has fallen to the 133,000,000-won range.

Not only risky assets such as cryptocurrencies but also safe-haven gold prices are on a downward trend. At 11 a.m. that day on the New York Commodity Exchange (COMEX), gold futures traded at $4,028.70 per troy ounce, down 1.12%.

Analysts say that as expectations for additional rate cuts disappear, investment asset prices such as Bitcoin and gold are falling together. According to CME FedWatch, the federal funds rate futures market expects a 57% probability that the policy rate will be kept unchanged at next month's Federal Open Market Committee (FOMC) meeting. The probability of a rate hold rose 20% points from a week earlier.

There are also views that AI bubble concerns are negatively affecting investment asset prices such as Bitcoin and gold. The Philadelphia Semiconductor Index, made up of AI and semiconductor-related stocks, fell 1.55% on the 17th. As fears of an AI bubble increase market volatility, investor sentiment in the Bitcoin and gold markets is also showing signs of weakening.

Experts expect the decline in asset prices to continue for the time being. Yang Hyun-kyung, an analyst at iM Securities, said, "As expectations for rate cuts fall and global liquidity decreases, preference for investment assets is weakening."

Reporter Jang Hyun-ju blacksea@hankyung.com