Summary
- It was reported that the price of Bitcoin fell below 120 million KRW domestically, returning to the price level shortly after the U.S. presidential election last year.
- It was suggested that the selling of Bitcoin and altcoins would continue due to the tariff policy of the Trump administration.
- The impact of the sharp decline in Bitcoin prices was even stronger on altcoins, with notable declines in major coins such as Ethereum and XRP.
Global Market Sees $80,000 Collapse
Experts: "Selling Pressure Will Continue"
Altcoins Fall Even More
Bitcoin has fallen below 120 million KRW domestically, returning to prices shortly after the U.S. presidential election (November 5 last year) when the bull market began. This is due to the shock from U.S. President Donald Trump's imposition of reciprocal tariffs. In the global market, the $80,000 level has been broken. The decline in altcoins, cryptocurrencies other than Bitcoin, was even greater.
According to the domestic cryptocurrency exchange Upbit, Bitcoin was traded at 111,252,000 KRW at around 4:30 PM on the 7th. It fell 4.2% on the day, and more than 9% when combined with the previous trading days. As a result, Bitcoin recorded its lowest level since November 10 last year. In overseas markets, it expanded its decline to the $74,000 level.
Bitcoin's sharp decline is due to the visible effects of the tariff war initiated by Trump. On this day, U.S. Treasury Secretary Scott Besant stated in an interview with the media that "they have been behaving badly for a long time, and this is not an issue that can be negotiated in a matter of days or weeks" regarding the countries subject to reciprocal tariffs. This analysis suggests that it dashed the market's hopes for any possibility of tariff withdrawal. Kim Min-seung, head of the Korbit Research Center, analyzed that "the macroeconomic uncertainty has increased due to the Trump administration's tariff policy, leading to continued selling pressure from investors."
Bitcoin fell 11.7% in the first quarter of this year alone, marking the worst quarterly return in 10 years since 2015. Although it fared relatively better than the stock market, many predict that the selling pressure will continue for the time being. Bloomberg evaluated that "despite President Trump's tariff policy, digital assets showed some resistance unlike U.S. stocks, but eventually fell significantly due to the selling pressure on this day." Sean McNulty, head of FalconX Asia-Pacific, predicted that "the pressure from put options (the right to sell at a specific price) is strong" and "Bitcoin selling may continue."
Altcoin prices collapsed even more severely. Ethereum plunged 14.5% compared to the previous trading day, recording 2,288,000 KRW. XRP (formerly Ripple) plummeted 18.8% to 2,595 KRW.
Reporter Jo Mi-hyun mwise@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.
