From 8 million won in January to 32 million won in December
Attention to liquidity alternative assets
This year’s market is’strong’ and’weak’ mixed predictions
Bitcoin, a cryptocurrency leader, continued its highest price march last year, jumping nearly four times. It is noteworthy whether the strength will continue in 2021 as it experienced an instant crash during the investment craze three years ago.
According to the industry on the 2nd, the bitcoin price exceeded 32 million won on the morning of the 31st of last month on Upbit, a domestic virtual asset exchange. This is the first time that the price of bitcoin has exceeded 32 million won on a domestic exchange.
Bitcoin surged more than 280% last year. Bitcoin, which was in the range of 8 to 10 million won in January of last year, surpassed 20 million won in three years in November, and continued to rise sharply last month, changing the highest price. The highest price at the time of the Bitcoin bull market three years ago was 28.88 million won, which was recorded in January 2018.
CoinMarketCap, a global virtual asset trading site, also used a new record high, surpassing $29,000 (about 31.5 million won) ahead of the new year.
Bitcoin also surged rapidly back in 2017, and the investment craze was on the rise. However, since the beginning of 2018, it has rapidly collapsed, and once fell to the 3 million won level.
Bitcoin’s rise again last year was when it received attention as an alternative asset due to its overflowing liquidity after the spread of Corona 19. The news of cryptocurrency payment from PayPal, the world’s largest mobile payment company, also overlapped with good news. In particular, it is a view that it is different from the bull market in 2017, which was bought mainly by individual investors as institutional investors jumped into investment. The price volatility has been significantly reduced.
Meltom Demirus’ Chief Strategy Officer (CSO) of Cryptocurrency Asset Manager Coinshares told CNBC that the share price of US electric car maker Tesla was rising and claimed that Bitcoin’s volatility was less than in the past. Tesla shares jumped more than 700% last year. “Variability is relative,” he said. “In the past two years, the industry surrounding Bitcoin has become more mature and evolved.”
How about this year? David Grider, strategist at Fundstrat, a US investment research firm, predicted that Bitcoin could reach $40,000 (about 43.4 million won) in 6 to 12 months. He saw that the demand for institutions following the recent US economic stimulus plan is having a positive effect on Bitcoin. Michael Novograz, CEO of the virtual asset investment firm Galaxy Digital, predicted that Bitcoin could reach $50,000 this year.
Park Hee-chan, a researcher at Mirae Asset Daewoo, also analyzed, “Since cryptocurrencies such as bitcoin have a strong nature of risky assets, it is highly likely that the strength will continue in a situation where economic expectations and aggressive monetary easing as it is now.”
There are still voices of concern. New York University professor Nouriel Rubini, known by the nickname’Doctor Doom’ for raising pessimistic economic outlook several times, recently appeared on Yahoo Finance Live. Nor” “total price manipulation” expressed a negative view.
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