[Asia Economy Reporter Minji Lee] As the price of Bitcoin surpassed 30 million won for the first time in history, related stocks in the stock market are also stirring. With increased liquidity and growing expectations that the value of the dollar, the key currency, may decline further, it is anticipated that the inflow of funds into virtual currencies (cryptocurrencies) will accelerate.
According to the Korea Exchange on the 28th, WIZIT showed a sharp rise of nearly 17% immediately after the opening in the KOSDAQ market. WIZIT has T Scientific (Omnitel), which owns an 8% stake in Bithumb Korea, the operator of the virtual currency exchange Bithumb, as its subsidiary (21% stake). As of 9:50 a.m. that day, WIZIT's trading volume recorded 36.22 million shares, a 360% surge compared to the previous trading day, making it the highest in the KOSDAQ market.
At the same time, Bident, which holds shares in Bithumb, traded at 8,290 won, up 4% from the previous trading day. Woori Technology Investment, which holds shares in Dunamu, the operator of the virtual currency exchange Upbit, traded at 5,030 won, rising nearly 7.5%. SBI Investment, known to have invested in virtual currency exchanges and listed as a related stock, traded up about 2% at 1,275 won. Following the historic breakthrough of Bitcoin's price surpassing 30 million won in the domestic market the previous day and the explosive trading volume, stocks of companies that have invested in virtual currency exchanges are showing an upward trend.
On Bithumb, the virtual currency exchange, Bitcoin's intraday high this morning was 30,431,000 won. As of 10 a.m., it fluctuated around the 30 million won level, with a trading amount of approximately 446.5 billion won. According to CoinMarketCap, an overseas virtual currency market company, Bitcoin is trading at $26,927.19, up 2% compared to 24 hours ago in overseas markets. It has surged about 14.26% over the past week.
Bitcoin has been the highest-yielding asset this year, estimated to have surged about 265% compared to the closing price on January 1 (8,327,000 won). Two years ago, the investment market was mainly formed by individuals, and the price surged to an intraday high of 288,885,000 won in early 2018, but recently, there has been a shift to institutional investors. Major institutional investors have recognized the growth potential of virtual currencies and have been actively investing. Haedoon Han, a researcher at SK Securities, explained, "With the Federal Open Market Committee's decision this month to maintain a dovish monetary policy, pressure on the dollar's weakness is inevitable, making Bitcoin more attractive as an alternative," adding, "It is time to invest in the growth potential of digital currencies."
However, since the rise in Bitcoin prices has proceeded rapidly, investment in related stocks should be approached cautiously. Earlier, the Korea Exchange Market Surveillance Committee issued an investment warning this month for related stocks such as WIZIT, stating that the prices of related stocks surged abnormally due to the Bitcoin issue.
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