Bitcoin hits record high… Kolon, Shinsung E&G surge 12%

Source

Korea Economic Daily

Summary

It was reported that the price of Bitcoin broke through $112,000, hitting an all-time high.
It was stated that major cryptocurrencies such as Ethereum and Ripple also rose alongside Bitcoin.
It was reported that related stocks such as Woori Technology Investment, Shinsung E&G, and Kolon all surged sharply following the rise in Bitcoin's price.

Breaks $112,000… Over ₩150 million in Korea

Ethereum, Ripple, and others rise together

Woori Technology Investment soars 16% intraday

Companies holding Dunamu shares rally

The price of Bitcoin surpassed $112,000 (about ₩153,850,000), setting a new all-time high after about a month. As the NASDAQ Composite Index hit a record high, demand for risky assets increased, and cryptocurrencies including Bitcoin also showed simultaneous strength, according to analysis.

According to CoinMarketCap on the 10th, Bitcoin was trading at $112,055 as of 4:55 a.m. (Korea time), up 3.04% from 24 hours earlier. This hit a new high for the first time in about a month since May 23, when it was trading at around $111,900. At a similar time, Bitcoin also soared to over ₩151,000,000 on domestic exchanges. However, due to the recent turn to a negative 'kimchi premium' (the price gap between domestic and overseas markets), it did not surpass the previous record (₩163,000,000).

Besides Bitcoin, major cryptocurrencies such as Ethereum, Ripple, and Dogecoin also rose in tandem. The NASDAQ Composite Index, concentrated with technology stocks, refreshed its all-time high for the first time in three trading sessions, strengthening risk appetite. That day on the NASDAQ, NVIDIA's market cap surpassed $4 trillion for the first time, with technology stocks rallying. CNBC reported, "Bitcoin is still regarded as a risky asset that rises and falls alongside stocks depending on investment sentiment," adding, "When the appetite for risky assets increases and investment in growth stocks rises, crypto rallies often unfold alongside."

As Bitcoin’s price surged, related stocks on the Korean stock market such as Shinsung E&G (12.06%), Kolon (11.59%), Woori Technology Investment (3.91%), and Hanwha Investment & Securities (1.29%) also jumped in unison. Woori Technology Investment soared as much as 16.52% intraday. This company holds a 7.20% stake in Dunamu, which operates the leading domestic virtual asset exchange Upbit (as of Q1). Shinsung E&G is grouped as a related stock due to holding a 9% stake in Woori Technology Investment.

In the case of Kolon, buying increased as it became known that its affiliate, Kolon Investment, holds shares in Dunamu. There is growing investor expectation that an increase in virtual asset trading will be reflected as equity method gains, further boosting sentiment.

Jinseong Kim / Ara Jo jskim1028@hankyung.com