Photo = REUTERS
When a report from a large US bank stating that bitcoin, a representative cryptocurrency (virtual currency), “must be used as an international trade payment method,” comes out, prices are soaring.
According to CoinMarketCap, an American cryptocurrency market relay site, on the 2nd at 7:30 am (Korean time), Bitcoin is trading at about 55,53400 won ($49,337), up 8.87% from 24 hours ago. .
Bitcoin was pushed to the 43,000 dollar level on the 28th of last month and recovered to the 49,000 dollar level again. It is analyzed that the rise in bitcoin price on this day was due to the US Citigroup’s favorable report on bitcoin.
Citigroup said in a report that day, “Bitcoin should be a currency that can be selected for international trade as it is internationally accepted.” “Bitcoin and other cryptocurrencies are expanding with the participation of many institutional investors.” Insisted.
Over the years, big Wall Street banks have maintained a view that bitcoin is similar to the 17th-century tulip bubble, saying it has no intrinsic value. However, in recent months, major Wall Street banks have started looking at bitcoin again. Like Melon Bank, large banks that invest in bitcoin or prepare products are appearing one after another.
Recently, the price of bitcoin has been fluctuating rapidly. After surpassing $58,000 on the 22nd of last month and breaking an all-time high, inflation concerns arose and fell back to the $43,000 level. In less than 10 days, it plunged more than $10,000.
However, the view of Citigroup is that this rally is different from the rally in the past, which has been called a bubble. During the 2017 rally, bitcoin reached $20,000 and plunged 80% the following year, but this time, it is explained that a large number of temporary investors are participating. In fact, bitcoin has surged 60% this year and 460% year-on-year, despite the recent rapid fluctuations.
There is still a skeptical view of Bitcoin. In a statement that day, the New York State Attorney General and Attorney General, who recently withdrew from cryptocurrency-related companies, warned investors, saying in a statement that “virtual currency can cause tremendous losses as it is dangerous.”
“The access of US law enforcement authorities to cryptocurrency exchanges operating around the world is restricted,” said Leticia. “If fraud occurs, investors are difficult to protect.” In addition, he added that fraud attempts are increasing as the price of bitcoin rises.
Seongsu Bae, reporter Hankyung.com [email protected]
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