Summary
- The article reports that Bitcoin prices have fallen below the 120 million KRW mark despite recession concerns and its designation as a strategic asset for US reserves.
- It analyzed that investment sentiment has weakened due to President Donald Trump's determination to proceed with tariff policies, and the market is failing to find positive momentum for cryptocurrencies.
- Observations suggest that price rebounds will not be easy, with the possibility that Bitcoin prices could fall to $70,000.
Drops to $70,000 Range Overseas
Investment Sentiment Weakens on Recession Concerns
Negative Factor: "No Direct Purchase by US Government"
Bitcoin prices have fallen back to the 110 million KRW range in just 10 days. Overseas, it was trading in the $70,000 range at one point. Analysts suggest that spreading concerns about an economic recession in the US have affected cryptocurrency investment sentiment.
According to the domestic cryptocurrency exchange Upbit on the 11th, Bitcoin was trading at 119,669,000 KRW as of 3 PM. This is the first time Bitcoin has fallen below the 120 million KRW mark since the 28th of last month, 11 days ago. In overseas markets, it plunged to as low as $76,808, breaking the $80,000 level. Ethereum was trading at 2.82 million KRW, recording its first drop to the 2 million KRW range since September last year.
Bitcoin prices have declined as US President Donald Trump shows determination to proceed with tariff policies despite recession concerns. Although Bitcoin has been designated as a strategic asset for US reserves, its price is trending downward.
On the 6th, President Trump signed an executive order to strategically stockpile cryptocurrencies including Bitcoin. However, the US government announced that it would not purchase cryptocurrencies with tax money, disappointing the market that had expected direct purchases. Added to this, recession concerns further dampened investment sentiment. Market observers note that "recently, virtual asset prices have been showing a stronger tendency to move in sync with economic conditions."
There are substantial observations that price rebounds will not be easy for the time being. Cryptocurrency specialist media Coindesk analyzed, "Despite a virtual asset summit at the White House and the announcement of an executive order to stockpile Bitcoin, the cryptocurrency market has failed to find positive momentum. Instead, concerns about trade wars and economic slowdown are pressuring investment sentiment." Ryan Lee, chief analyst at BitgetResearch, predicted, "If Bitcoin breaks below $77,000, its price could fall further to $70,000. On the other hand, if it rebounds at $75,000, it could jump to $85,000."
Park Jae-won, reporter wonderful@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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