On the morning of the 14th, when bitcoin broke a record high of 70 million won on the domestic exchange for the first time, the prices of cryptocurrencies including bitcoin are displayed on the market board at Bithumb Gangnam Customer Center in Gangnam-gu, Seoul. Newsis
The virtual currency bitcoin price exceeded 70 million won for the first time in the domestic market. In addition to expectations that liquidity will increase further due to the large-scale economic stimulus measures in the US, the interest of companies and investment institutions is also increasing.
Bitcoin, which fell to 40 million won, surpassed 70 million won
According to Bithumb, a cryptocurrency exchange on the 14th, one bitcoin is trading at 7031 million won as of 4 p.m. on the day. At Bithumb, bitcoin at 5:13 am that day, after surpassing 70 million won for the first time ever, soared to 71.2 million won. In other cryptocurrency exchanges such as Upbit, the price per unit exceeded 70 million won.
Bitcoin price skyrocketed nearly 70% in 20 days last month and then plunged to 49 million won. US Treasury Secretary Janet Yellen said, “Bitcoin is an extremely inefficient asset,” and “As it is a speculative asset, there is a high risk of loss.” In addition, Tesla CEO Elon Musk said, “Bitcoin prices are too high,” and Microsoft founder Bill Gates warned, “If you’re not as rich as Musk, don’t invest in bitcoin.”
The fact that Bitcoin exceeded the price of 70 million won in less than a month has been greatly influenced by overflowing liquidity. In particular, as U.S. President Joe Biden signed an additional fiscal stimulus plan worth 1.9 trillion won on the 11th, there are growing expectations that some of this could flow into the cryptocurrency market. In addition, as analysis that large fiscal expenditures will cause inflation, virtual assets are emerging as an alternative investment vehicle.
Visuals-Bitcoin price fluctuations
Expectations for liquidity increase are rising, and it is spotlighted as an alternative investment destination.
There is an atmosphere in which the trust of companies and institutional investors in cryptocurrency is also increasing. Last year, starting with PayPal, an online payment company, Tesla and others announced plans to include Bitcoin as a payment method. Mastercard has also issued a policy to accept cryptocurrency payments, and Bank of New York (BNY) Melon, the oldest bank in the United States, has announced plans to include Bitcoin in its asset portfolio.
There is also a view that domestic investors are turning their eyes as a high-yield investment destination. It is analyzed that the virtual asset market is attracting attention as one of the alternative investment destinations as the domestic stock market has recently increased.
The peculiar thing is that the price of bitcoin has risen by’I’m alone’ while technology stocks such as Apple and Tesla are on the downside as inflation pressures such as rising bond rates have risen. Bitcoin, which is evaluated as a risky asset, has been drawing an upward curve with major growth stocks such as Tesla.
However, the mid- to long-term outlook remains mixed. U.S. investment bank JPMorgan predicted that in January, Bitcoin could rise to $146,000 (160 million won). It is from the judgment that bitcoin can be a store of value to replace gold.
On the other hand, there are still loud voices supporting Minister Yellen, saying “there is a great loss of concern.” Bank of America (BoA) chief investment strategist Michael Hartnet said in a recent report. “Bitcoin is the mother of all speculation.”
Youngha Son reporter [email protected]
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