[Bitcoin Now] Drops Over 7%... Falls to 31 Million Won Range

After the Collapse Below 40 Million Won, the Decline Widens Further

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[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin plummeted, falling to the 31 million KRW range.

According to the domestic cryptocurrency exchange Upbit, as of 10:17 AM on the 22nd, Bitcoin recorded 31.8 million KRW, down about 7.88% compared to 24 hours earlier. Since breaking below 40 million KRW on the 19th, the decline appears to be accelerating.

There is an interpretation that the suspicion of double spending?using the same Bitcoin for two payments?has negatively impacted the cryptocurrency market. The cryptocurrency-related institution 'BitMEX Research' raised suspicions on the 20th (local time) that double spending of Bitcoin had occurred.

Subsequently, BitMEX Research reversed its analysis, stating that it might not be double spending but rather an RBF (Replace-By-Fee) transaction, a phenomenon where an unconfirmed specific transaction is replaced by another offering a higher fee. However, according to the U.S. economic media Market Insider, the Bitcoin network monitoring tool ‘BitMEX Fork Monitor’ claimed that no RBF phenomenon was detected, causing confusion.

It is also interpreted that the selling pressure intensified as the Joe Biden administration in the U.S. put brakes on cryptocurrencies. Janet Yellen, the nominee for Treasury Secretary, suggested regulation during her confirmation hearing before the Senate Finance Committee on the 19th (local time), stating, “I think cryptocurrencies are mainly used for illicit finance.” Following Yellen’s remarks, CNBC reported that as of 11:45 AM on the 21st (local time), more than 100 billion USD (about 110.1 trillion KRW) disappeared from the cryptocurrency market capitalization over 48 hours.

Ethereum, the second largest cryptocurrency by market capitalization, also could not avoid a downward trend. Ethereum recorded 1,165,000 KRW, down about 22.51% compared to 24 hours earlier. Although Ethereum hit a new high on the 20th, it failed to find any special upward momentum afterward. Additionally, combined with Bitcoin’s decline, it is analyzed that Ethereum fell even more sharply.