[Bitcoin Now] Growing Volatility... Staggering Back to 38 Million Won Range

Decline Resumes Two Days After Surpassing 40 Million Won

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[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin fell back to the 38 million KRW range just two days after surpassing 40 million KRW.

According to the domestic cryptocurrency exchange Upbit, as of 2 p.m. on the 21st, Bitcoin was recorded at 38.2 million KRW, down 2.13% compared to 24 hours earlier. It has been declining for two consecutive days since breaking through 40 million KRW on the 19th.

The decline is attributed to persistent concerns about Bitcoin. Cryptocurrency-focused foreign media Cointelegraph analyzed that selling pressure increased due to overheating in Bitcoin derivatives. The lack of clear positive news after Bitcoin surpassed 40 million KRW is also seen as a factor fueling market anxiety. CNBC reported on the 19th (local time), citing a survey by the German investment bank Deutsche Bank, that more respondents (56%) expected Bitcoin to halve in value than those (25%) who predicted it would double.

There was also a rebuttal that institutional investment is less than expected. The British weekly magazine The Economist argued against the view that institutional investors are driving Bitcoin’s rise, stating, “Large pension funds avoid assets like Bitcoin that do not generate future cash flows.” Jeff Currie, head of commodities research at Goldman Sachs, said in an interview with CNBC on the 11th, “Currently, only about 1% of the over $600 billion invested in Bitcoin is institutional money.”

Meanwhile, Ethereum also fell 3.9% compared to 24 hours earlier, recording 1.453 million KRW. It failed to hold the 1.5 million KRW level maintained the previous day. However, the outlook for Ethereum is bright. David Grider, Digital Asset Strategist at Fundstrat Global Advisors, said in an interview with Bloomberg on the 20th (local time), “Ethereum offers the best risk-reward and investment potential among cryptocurrencies,” adding, “There is room for it to rise up to $10,500.”