Bitcoin, a cryptocurrency leader, surpassed 40 million won each for the first time ever. The photo is a table of cryptocurrency prices at Bithumb Gangnam Center in Seoul on the morning of the 7th. Photo = Yonhap News
The virtual asset (cryptocurrency) bitcoin price exceeded 40,000 dollars for the first time ever.
Major foreign media such as CNBC reported that the bitcoin price at 1 pm on the 7th (local time) was traded at $40,188 each, up 13% from the previous day, citing Coinmetrics data.
Bitcoin price has soared more than 460% in the past year, as well as abundant market liquidity and institutional buying.
On the 4th, the U.S. Currency Supervisory Service (OCC) gave banks the ability to use stablecoins (virtual assets linked to currency values) for payment and settlement.
The US Bloomberg News analyzed that “the stablecoin regulations announced by the OCC could bring the virtual asset market closer to mainstream finance.”
In addition, a large-scale bitcoin purchase process led by US institutional investors from last year, resulting in steady demand, has a positive effect.
Grayscale Investment, a U.S. virtual asset investor, newly bought 72,950 pieces (about 2.446.3 billion won) of bitcoins last month alone. Last year, a total of 18 billion dollars (about 19,557.5 billion) worth of assets increased, most of which was reportedly increased due to the new purchase of bitcoin.
It is reported that MicroStrategy, a US NASDAQ-listed company, purchased about $420 million (471.9 billion won) worth of bitcoin twice in August and September last year. On the 21st of last month, it bought an additional bitcoin worth $650 million (about 715 billion won).
However, opinions of experts are mixed over the future market direction.
In a recent report to institutional investors, Tom Fitzpatrick, managing director of Citibank, said, “Bitcoin price will reach $318,000 this year.” “The bull market that started in 2019 is in late 2022. It can lead to,” he observed.
Nicholas Panigirchoglu, JPMorgan investment strategist, said, “If Bitcoin is to be close to the size of private investment in gold, its market capitalization must increase 4.6 times. In this case, the theoretical long-term target price is $146,000 (approximately). 159 million won)” analyzed.
On the other hand, Peter Seef, CEO of Euro Pacific Capital, said, “People who invest in bitcoin only buy bitcoin to sell at a higher price, so it is different from gold that is actually used in many ways.” “People who invest more money in coins will lose more money. Ultimately, if the value of bitcoin becomes zero, the loss for all investors is equal to 100%.”
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