Bitcoin Briefly Falls Below $60,000 as US Policy Emerges as Rebound Catalyst

Bitcoin briefly fell below $60,000 recently, touching its lowest level in 52 weeks. The cryptocurrency has remained in a downtrend since its peak in October last year, with liquidations of leveraged positions amplifying the decline.

According to CoinMarketCap, Bitcoin was trading at about $63,400 as of 7 a.m. on June 13. It fell to the $59,000 range on June 6. Since then, it has moved between $59,000 and $64,000. That is more than 50% below its all-time high of $126,198 on Oct. 7 last year.

Global exchanges have also rolled out derivatives tied to traditional assets, weighing on Bitcoin liquidity as leverage demand spreads across markets.

Binance this month successively listed perpetual futures tied to Samsung Electronics, SK Hynix and Hyundai Motor with leverage of up to 20 times. Strategy's decision to sell Bitcoin and a SpaceX listing also combined to pressure market sentiment.

The next key variable for Bitcoin's direction is US legislative and policy action. Investors are first watching whether the Digital Asset Market Clarity Act, or CLARITY Act, passes the Senate.

Kim Min-seung, head of research at Korbit, told Yonhap News that the biggest factor for the crypto market going forward will be US discussions over a strategic Bitcoin reserve and the recently proposed America Reserve Modernization Act, or ARMA.

"If Bitcoin becomes a strategic asset of the US, not only the US government but also most financial institutions could allocate assets to Bitcoin, which may have a bigger impact than approval of a spot ETF," Kim said.

Shin Yong-hyun, Hankyung.com reporter, yonghyun@hankyung.com