[Bitcoin Now] Bitcoin Rebounds... Surpassing 8 Million Won at One Point

Interpretation Reflecting Investment Sentiment Targeting Low-Priced Buying

Source=Screenshot from Upbit homepage

[Asia Economy Reporter Minwoo Lee] The price of Bitcoin, the leading virtual currency (cryptocurrency), which had been trading in the low 7 million KRW range the previous day, rebounded within a day. At one point in the morning, it even surpassed 8 million KRW.

According to Upbit, a domestic virtual currency exchange, as of 4:50 PM on the 31st, the price of Bitcoin stood at 7.84 million KRW. Around 7 AM, it recorded 8.01 million KRW. Compared to the previous day's drop to 7.2 million KRW, this represents an increase of up to 11%.

At the same time, Ripple and Ethereum showed little change from the previous day. Ripple was trading at 211 KRW, up 0.96% from the previous day, while Ethereum was trading at 160,500 KRW, down 0.5% from the previous day.

This appears to be because investors who had been watching the recent downward trend adopted a low-price buying strategy. The virtual currency market began to decline along with the stock market, which froze due to the novel coronavirus infection (COVID-19). Unlike before, when it served as an alternative investment asset outside the institutional market, it has shown a tendency to follow the trends of the institutional market.

This day's rebound is also seen as following the existing stock market's rebound trend. In fact, on the 30th (local time), the New York stock market rebounded by more than 3%. The Dow Jones Industrial Average rose 3.19% (690.70 points) to close at 22,327.48, and the S&P 500 index closed up 3.35% at 2,626.65. This was interpreted as reflecting expectations fueled by hopes for COVID-19 vaccine development and strengthened government responses.