[Bitcoin Now] Slight Pause but... "More Expectations for Next Year than This Year"

Dropped to 20 Million Units in One Day... Brief 'Pause' Phase
Increased Institutional Investor Participation Could Boost Rise Next Year

[Asia Economy Reporter Minwoo Lee] The price of the leading cryptocurrency Bitcoin has fallen back to the 20 million KRW range. After a sharp rise, it appears to be taking a brief breather. As institutional investors are being allowed to participate through ongoing institutionalization, there is analysis that the price could rise further next year.

According to the domestic cryptocurrency exchange Upbit on the 2nd, as of 2:14 PM, the price of Bitcoin recorded 20.61 million KRW, down 1.25% compared to 24 hours earlier. This is somewhat different from the sharp rise seen until the previous day. Around 8:15 PM the day before, the Bitcoin price recorded 21.65 million KRW, the highest since January 12, 2018.

Nevertheless, compared to 15.57 million KRW on the 1st of last month, it is still about 32.3% higher. This greatly exceeds the KOSPI's rise of 16.4% during the same period. This increase is analyzed to be a complex effect of massive liquidity supply causing currency value depreciation and institutional investors entering the market. Additionally, the fact that world-renowned investors have incorporated Bitcoin into their portfolios also contributed to the price rise.

Ha Daehun, a researcher at SK Securities, explained, "Jim Simons, chairman of Renaissance Technologies, started investing in Bitcoin from March, and Stanley Druckenmiller, one of the top hedge fund investors, also holds Bitcoin and has stated that he expects returns higher than gold. The US virtual asset trust fund 'Grayscale,' established in 2013, has been purchasing Bitcoin daily and is becoming a major player in the market. Among Wall Street and the millennial generation, the perception of Bitcoin as 'digital gold' is spreading," he said.

He also viewed the temporarily stalled price as not problematic. Unlike the 'coin frenzy' in 2017, the inflow of institutional investors has eliminated the 'Kimchi premium' (the phenomenon where domestic Bitcoin prices are higher than overseas), and volatility has relatively decreased. The researcher added, "Global financial companies and fintech firms, led by the US, are accelerating their investments, and institutionalization and safeguards (Custody) for institutional investors' market entry are being prepared. Since larger institutional investors are preparing to enter the market, next year is expected to be even more promising than this year," he forecasted.